By Jim Pitoukkas, Coldwell Banker Commercial Shook
Outside of recognition related to Purdue University, the Greater Lafayette region (consisting of West Lafayette, Lafayette and surrounding towns in Tippecanoe County), has been in the shadows of the Indianapolis MSA to the south and Chicago MSA to the north. This is changing, though. Growth over the last decade has pushed Greater Lafayette into the national spotlight as an emerging hub for innovation in advanced manufacturing in industries including medical, aerospace and defense, agriculture and nanotechnology, and a burgeoning housing market.
For three quarters straight, The Wall Street Journal and Realtor.com have ranked Greater Lafayette the No. 1 Emerging Housing Market in America based on comparatively affordable housing, a skilled technology-based workforce, and a strong growing local economy. Additionally, current and to-be residents benefit from consistent public investments in quality-of-life infrastructure that continue to attract new residents across a range of ages and backgrounds.
Quality of life
Greater Lafayette has invested in excess of $889 million in public investment since 2015. These investments have ranged from new utility infrastructure, a new minor league ball field, parks, county-wide trails, public facilities like the West Lafayette Wellness Center and the Lafayette Public Safety Center, and so much more.
Employers
Purdue University remains a key driver of economic development in the region, but certainly not the only driver of economic growth. Biotech, advanced manufacturing and aerospace are a few of the many technology-forward industries that have strong and growing local presences. Employers such as Subaru, Cook Biotech, Evonik, ZF, CAT, Wabash National, GE Aviation, Saab Technologies, Rolls Royce, Butler Aerospace and Defense and Flir are a few of the many large and well-known employers that are proud to call Greater Lafayette home.
Furthermore, Greater Lafayette is at the bookend of the LEAP District, a 9,000-acre development spearheaded by the Indiana Economic Development Corp. with the mission of establishing Indiana as a dominate part of the national push toward hard tech manufacturing independence. Tailwinds from local industry, Purdue University and state initiatives are sure to benefit the region for years to come.
Development
With so much momentum in Greater Lafayette, it is no surprise that the development community has taken notice and invested billions of dollars into the community.
Housing has been a primary focus in and around the Purdue main campus. The $123 million State Street redevelopment project paved the way (pun intended) for several multi-million-dollar developments along the corridor. Rise on Chauncey, completed by R2 Cos., brought the tallest student housing property to the market. Hub on State, developed by Core Spaces, followed. The newest frontier of campus-proximate development is underway in the Discovery Park.
Discovery Park District is a multi-billion-dollar development led by the Purdue Research Foundation. The district has successfully attracted Saab, where the global company has now built a facility that manufactures the T-7 Red Hawk. By 2027, Saab expects to hire up to 300 employees for this facility.
Additionally, SkyWater Technology has announced plans to build a $1.8 billion semiconductor plant that would eventually offer hundreds of high-tech jobs. The community has not sat idle in reaction to the industry coming this way. The community has rallied around creating the support the industry will need to thrive.
Purdue University and Ivy Tech have announced plans to offer programs to educate and train the workforce that will be needed in the years to come. Additionally, significant investments are being made to create new housing.
Housing
The tight housing supply in Greater Lafayette has led to a number of successful multifamily and single-family developments.
Luna Flats, a 98-unit mixed-use apartment and retail infill project in downtown Lafayette, recently opened its doors with 94 of the 98 residential units occupied. The project successfully incorporated historical elements of Main Street, including street-level office and retail suites. Perhaps most importantly, the project connected the east and west ends of scenic Main Street. Downtown Lafayette, with its many charming restaurants and retailers, continues to attract local and out-of-town visitors alike.
Provenance at Discovery Park District, a mixed-use multi-phase project being developed by Old Town Cos. in partnership with the Purdue Research Foundation, has brought Greater Lafayette its first larger-scale live/work/play community. The project has been well received. Townhomes, apartments and single-family homes are being quickly absorbed by the community as they are built.
New frontiers
Outward growth is being supported on the north, south and east side of Greater Lafayette by several public road and utility extensions, a couple of which I will highlight.
Yeager Road, on the north side of Tippecanoe County, is currently being extended to connect Kalberer Road and CR500. Once complete, tentatively this fall, an area of 400 acres will be further readied for development. A couple large-scale housing projects along the Yeager Road extension are already going through the entitlement process in anticipation of road completion. The site is close to area schools, shopping and the new West Lafayette Wellness Center. This is just one more example of local leaders supporting forecasted growth, and the expected demand for additional housing.
On the east side of Lafayette, community leaders are supporting growth by readying a large site for new industry, by way of the extension to Park East Boulevard from Haggerty Road to McCarty Lane. The planned extension will bring water and sewer to the belly of a +/-450-acre industrial-zoned site, which was recently certified as shovel ready by the state.
The east and south sides of Lafayette are what many consider the next frontier of industrial development in the county. Recent industrial projects by INOK Investments have shown the need for more industrial and warehouse space. The industrial real estate market as a whole has been, and continues to be, in tight supply.
Final thoughts
With so many economic tailwinds in Tippecanoe County, and in Indiana in general, it is an exciting time to be a Hoosier. While the macro environment may dampen growth a bit, I believe Tippecanoe County is, and will remain, somewhat insulated from a broader slowdown.
Growing desirable employment opportunities, relatively affordable housing, good schools, strong local and state leadership, and high quality of life are sure to keep Tippecanoe County on an upward trajectory for years to come.
Jim Pitoukkas is a broker with Coldwell Banker Commercial Shook. This article originally appeared in the October 2023 issue of Heartland Real Estate Business magazine.