HSA Commercial Real Estate has finalized a new lease agreement with home furnishings retailer Ashley DSG for 68,486 square feet of industrial space in Plainfield, Indiana. The transaction brings the Gateway Industrial V building, located near the Indianapolis International Airport, to full occupancy.
Key Takeaways
- Ashley DSG signed a 68,486-square-foot lease at Gateway Industrial V in Plainfield, Indiana.
- The deal brings the 262,758-square-foot building, owned by HSA Commercial Real Estate, to 100% occupancy.
- The lease signals an expansion for Ashley DSG's warehousing and distribution operations in the Indianapolis area.
- This transaction occurs as the Indianapolis industrial market shows signs of recovery, with positive absorption topping 1 million square feet for the first time in nearly two years.
Details of the Lease Agreement
Chicago-based HSA Commercial Real Estate announced the completion of the lease at its Gateway Business Park facility, located at 845 Airtech Parkway. The tenant, Ashley DSG, is a family-owned home furnishings retailer based in Memphis, Tennessee, with a significant retail footprint of 166 locations across the United States and Canada.
The newly leased space will serve as a critical hub for the company's logistics network. Ashley DSG plans to use the facility for warehousing and distributing home furnishings throughout the region. According to the announcement, this move represents both a relocation and a significant expansion of the company's existing presence in the Indianapolis market.
As part of the agreement, HSA Commercial managed specific tenant improvements to prepare the space for Ashley DSG's operations. These buildouts included the installation of new racking systems and upgrades to the truck dock area to optimize logistics and workflow.
Indianapolis Industrial Market Overview
The lease agreement comes at a pivotal time for the Indianapolis industrial real estate market. Recent data from CBRE indicates a positive shift in market dynamics during the second quarter of 2025. The market recorded 1.56 million square feet of positive absorption, a key metric that measures the net change in occupied space.
This figure is significant as it marks the first time in nearly two years that the Indianapolis market has surpassed the 1 million square feet threshold for quarterly absorption. While overall leasing volume has moderated, this strong absorption helped improve the metro-wide vacancy rate to 10.9%.
Understanding Market Absorption
Positive absorption occurs when more commercial space becomes occupied than becomes vacant during a specific period. It is a primary indicator of a strengthening real estate market, suggesting that demand for space is growing faster than new supply is becoming available or existing space is being vacated.
Southwest Submarket Strength
The Gateway Business Park is situated within the Southwest submarket of Indianapolis, a logistics corridor that continues to demonstrate exceptional performance. The vacancy rate in this specific area stands at just 5.8%, which is substantially lower than the broader metropolitan average of 10.9%.
This lower vacancy rate highlights the high demand for industrial properties in close proximity to major transportation infrastructure, such as the Indianapolis International Airport. Companies focused on logistics and distribution are consistently drawn to this submarket for its strategic advantages.
Gateway Industrial V Facility Profile
Gateway Industrial V was developed by HSA Commercial on a speculative basis and was completed in 2019. The modern distribution center was designed to meet the needs of contemporary logistics and supply chain operators. The building's total size is 262,758 square feet.
Building Specifications
- Clear Height: 32 feet
- Truck Docks: 30 (expandable)
- Drive-In Doors: 4
- Parking Stalls: 185
- Trailer Positions: 70
With the signing of Ashley DSG, the facility is now fully leased. The building's tenant roster includes a diverse group of companies from various industries. Other occupants include Mygrant Glass Company, a major auto glass distributor; Safran Nacelles, a Paris-based aerospace firm; and LifeNet, a provider of transplant solutions.
Transaction Representation
The lease negotiations involved representation from multiple commercial real estate firms. Tom Niessink of Niessink Commercial Real Estate represented the tenant, Ashley DSG, in the transaction.
Ownership, HSA Commercial Real Estate, was represented by Terry Busch and Jared Scaringe of CBRE's Indianapolis office. Their involvement underscores the collaborative effort required to finalize significant industrial leases in a competitive market.
