Real estate exec sees strength amid changes in Indiana malls
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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowA central Indiana real estate executive says the retail industry around the state is surprisingly strong but is going to look a bit different in certain areas over the next few years.
From the overhaul of Circle Centre Mall in downtown Indianapolis to recently announced changes at The Fashion Mall at Keystone on the city’s north side, Cushman & Wakefield Executive Director Bill French told Inside INdiana Business the changes will bring needed improvements.
“The mall businesses is strong if the malls in the right location,” French said.
In December, Wisconsin-based Hendricks Commercial Properties LLC unveiled its $600 million plan to gut the traditional indoor mall and create an open-air experience with retail entertainment, office and housing.
French said the project will coincide with another major downtown project.
“You’re going to have an expanded convention center and the Signia hotel right next door to this all coming online about the same time,” he said. “I think that’s a tremendous alignment, and as a result, we’re going to see a lot of positive things happening on the core of downtown Indianapolis.”
At The Fashion Mall, longtime retailer Saks Fifth Avenue announced plans to close the Indianapolis location as part of a larger plan to redevelop a portion of the mall.
Owner Simon Property Group told our partners at the IBJ that the project will include a “curated selection of highly sought-after retail brands,” along with first-in-market dining and entertainment, an outdoor plaza and new shopping space.
French said he expects to see more experiential types of retail coming with the project.
“We’re gonna see more specific operators like Levi’s or Gucci, but we’ll also see some outdoor area that will be incorporated and possibly some office space included, too. “I think it’ll drive a lot more volume in people and dollars through the Fashion Mall, and I think be very good for everyone who shops there.”
The first new stores at The Fashion Mall are expected to come online in 2026.
Retail spots in central Indiana are currently about 95% occupied, according to French, with some of the suburbs such as Avon, Brownsburg, Carmel, Fishers and Zionsville at 2%-3% occupancy. He noted other markets statewide are seeing good business as well.
“The South Bend-Mishawaka area has been very strong. Fort Wayne remains strong; I see a lot of growth in Fort Wayne in particular,” he said. “Down on the south side where [River] Ridge is located in Jeffersonville. A lot of new construction and development has gone on there in the last couple of years. That 265 beltway that goes around has really made dramatic improvements.”
French said another indicator of the strength of the retail market here in Indiana is bankruptcies. He said bankruptcies in the retail space are among their lowest levels in 10-15 years.