Positives tallied in Tippecanoe County real estate market

Residential building up 21 percent, commercial market makes a strong year-end finish

Reports of increased single-family building and a strong year-end finish in commercial activity are fueling the potential for renewed vigor in Tippecanoe County’s real estate market.

That was the word at the 18^th Annual F.C. Tucker/Lafayette Realtors State of Real Estate held Tuesday, January 31, at the Lafayette Theater in downtown Lafayette. The movie theme, “Back to the Future,” was carried out in movie theater refreshments and even costuming.

New single-family construction activity jumped 21 percent, with 462 building permits issued in 2011, compared to 381 in 2010, said Lou Johnson, broker, F.C. Tucker/Lafayette Realtors, Residential Division.

Re-sale activity of single-family properties sold in the Lafayette, West Lafayette and Tippecanoe School Corp. districts in 2011 totaled 1,650 homes, about the same as 2010’s 1,674 properties sold.

“We reached that number in 2011 without stimulus funding to boost sales, which had contributed significantly to 2010 sales, so achieving the numbers we did in 2011 is a positive sign,” Johnson said. 

Volume for Tippecanoe County residential sales in 2011 totaled $230.2 million, compared to $233.2 million last year.

“We are optimistic that residential real estate is showing signs of returning to more positive activity, and that gives us great hope and energy for 2012,” Johnson said. “Many employers are hiring, new businesses and industries are coming to town, and that growth ultimately bodes well for our residential real estate market.”

 
"On the commercial side, activity is keeping us quite busy,” said Kevin Bol, associate broker at F.C. Tucker/Lafayette Realtors, commercial division. 

“Look for new occupants at several commercial sites,” he said.

Reese Wholesale, which supplies roofing and related materials, is moving from Farabee Drive to the former 84 Lumber site on Sagamore Parkway north. “That returns activity to a long-vacant site on a main thoroughfare, which is good for the community,” Bol said.

A local investor has acquired the former Gardiner RV site and building on State Road 38, a six-acre site, and is planning a multi-tenant complex there which will include use of the current building. “That work will start this summer,” he said.

“Several other moves will give businesses expanded space,” he said.

Lifelong Fitness is moving from Mar Jean Village to the Shenandoah Drive building that Goodwill vacated for a larger store. Cargill, which operates a grain-handling plant on Wabash Avenue, is leasing administrative office space in Renaissance Place downtown. And this spring, the law firm of Reiling, Teder & Schrier is also moving into the downtown high-rise.

Recent newcomers include Tippecanoe County School Corp.’s health center and the Indiana Children’s Bureau, both in the Baldwin Commercial Building at U.S. 52 and State Road 25 East.

“Commercial real estate finished quite strong in 2011, and we’re seeing even more activity the first of the new year,” Bol says. “Confidence is returning, and indications are that this trend could continue throughout 2012.”

He also cited continued growth of medical office space leasing and rising prices for farmland. “Farmland has been increasing for five years, and I see that as a continuing trend.”

State of Real Estate was co-sponsored by Greater Lafayette Commerce, the area’s nonprofit economic development organization.

F.C. Tucker/Lafayette operates a residential sales office at 1425 Sagamore Parkway North in Lafayette and a commercial division in Renaissance Place, 250 Main Street. F.C. Tucker has operated locally since 1989 and is staffed by more than 30 residential professionals and six commercial brokers.    

Real Estate Activity Summary – Tippecanoe County

Residential 2009         Residential 2010         Residential 2011

Properties sold:              1,774                            1,674                            1,650

Dollar volume:               $245.5 million                $233.2 million                $230.2 million

Average sales price:      $138,369                       $139,306                       $139,535

Median price                 $121,000                       $122,500                       $121,000

New housing starts,

    building permits         405 total                        381 total                        462

                                      85, Lafayette                 65, Lafayette                 80, Lafayette

                                      72, West Lafayette        67, West Lafayette        92, West Lafayette

 248, County                  249, County                   290, County

Note: Residential data covers homes in the Lafayette, West Lafayette and Tippecanoe County school corporations. Information courtesy of Lafayette and West Lafayette city engineers’ offices, Tippecanoe County Building Commission, Tippecanoe County Area Plan Commission and LRAOR (MLS).