Zacher Company Predicts Spec Industrial Comeback in Northeast Indiana

New federal tax incentives expected to spur industrial development despite rising costs

Published on Feb. 12, 2026

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According to a new report from The Zacher Company, Northeast Indiana is expected to see an increase in new industrial construction, including more speculative (spec) development, in 2026. Favorable tax incentives are expected to offset rising construction costs, leading developers to add new industrial product to the region, with a focus on larger spaces of 100,000 square feet or more. The report also forecasts higher industrial sales activity and continued strong demand for industrial space in the region.

Why it matters

The predicted increase in industrial development, including spec construction, signals growing economic activity and confidence in Northeast Indiana's industrial real estate market. This could lead to job creation, business expansion, and increased tax revenue for local communities. The report highlights the impact of federal policy changes in driving investment decisions.

The details

The Zacher Company's 2026 Northeast Indiana Industrial Market Report predicts that new federal tax incentives will offset rising construction costs, enabling developers to move forward with more speculative industrial projects targeting users seeking 100,000 square feet or more of space. The report forecasts that at least half of the region's existing vacant spec industrial buildings will be absorbed this year, though this won't significantly impact the overall 4.75% industrial vacancy rate due to the smaller size of many of these buildings. The report also anticipates more industrial sales activity as owners become more open to selling amid flat lease rates but rising sale prices.

  • The Northeast Indiana market began 2026 with a 4.75% industrial vacancy rate.
  • In 2025, the region saw 2.6 million square feet of new industrial construction and 362,000 square feet of positive net absorption.
  • Eight industrial spec buildings totaling 762,500 square feet were absorbed in Northeast Indiana in 2025.

The players

The Zacher Company

A commercial real estate firm that released the 2026 Northeast Indiana Industrial Market Report, which provides insights and forecasts for the regional industrial real estate market.

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What’s next

The Zacher Company report indicates that the region's industrial real estate market will be an area to watch in 2026, with potential for increased development, sales activity, and absorption of existing spec space.

The takeaway

Northeast Indiana's industrial real estate market is poised for a comeback, driven by favorable federal tax incentives that are expected to spur new speculative development and sales activity despite rising construction costs. This signals growing economic confidence in the region and could lead to job creation and business expansion.