Industrial Warehouse
For Sale
$4,350,000
2334 Production Drive, Indianapolis, IN 46241
Industrial building with I-3 zoning and access to I-465 within one mile.
Property Size49,000 SF
Lot Size3.34 Acres
Price / SF$88.96
Days on Market207
Property Features for 2334 Production Drive
General Information
Standard status
Active
Size
49,000 SF
Lot size
3.34 Acres
Zoning
I-3
Additional Details
Highway Access
Yes
Amenities
Forced Air, Natural Gas
Building Details
Building Size
49,000 SF
Year Built
1967
Listing Agency:
Keller Williams Indy South
Listed By:
James Storey · License #RB17001849
(317) 519-5178
Source:
Evrealestate
Added: Feb 18
Changed: Sep 12
Last Checked: Sep 12 at 4:38AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Keller Williams Indy South
Investment Insights
Based on property information with market context.
The property is an industrial warehouse building totaling 48,896 SF on an approximately 3.34-acre site. Constructed in 1971, the facility carries I-3 zoning and is positioned for industrial use within Indianapolis.
I-465 is located less than one mile from the property, providing direct proximity to a major regional transportation route. The address is 2334 Production Drive, Indianapolis, IN 46241.
I-465 is located less than one mile from the property, providing direct proximity to a major regional transportation route. The address is 2334 Production Drive, Indianapolis, IN 46241.
Key Highlights
- 48,896 SF industrial warehouse building
- I‑3 zoning
- Less than one mile from I‑465
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$295,977
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
6.80%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$5,919,540
$5.9M
Cap Rate 7%
$4,228,243
$4.2M
Cap Rate 9%
$3,288,633
$3.3M
Market Conditions
NOI Build-Up for 48,896 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$381.4K $7.80/SF
− Vacancy
−$33.2K −$0.68/SF
EGI
$348.2K $7.12/SF
− OpEx
−$52.2K −$1.07/SF
NOI
$296.0K $6.05/SF
Area
Indianapolis, IN
Vacancy
8.70%
Lease Rate
$7.80 /SF/Yr
Expense Ratio
15.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$5,919,540
Cap Rate 7%
$4,228,243
Cap Rate 9%
$3,288,633
Alternative Uses
Best Use
Warehouse
$4.23M
$3.70M – $4.93M
NOI $295,977 @ 7.0% cap · market cap 6.80%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$12.17M
$10.65M – $14.20M
NOI $851,964 @ 7.0% cap · market cap 19.59%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
741
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 46241, IN
33,568
Population
12,414
Households
2.7
Avg Household Size
33
Median Age
15%
College-Educated
73%
High-School Grad
23.9 sq mi
ZIP Area
1,405
Density / Sq Mi
$51,598
Median Household Income
$33,477
Median Earnings
$1,118
Median Rent
$111,500
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Industrial in Indianapolis, IN
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Similar Off Market Nearby
- K&N warehouse — US-40, Indianapolis, IN 46241
- Self Storage — 5730 Fortune Cir W, Indianapolis, IN 46241
- MQ Learning Center — 2301 Executive Dr, Indianapolis, IN 46241
- All My Sons Moving & Storage — 1936 S Lynhurst Dr, Indianapolis, IN 46241
- Enterprise Holdings H Lot — 1602 S High School Rd, Indianapolis, IN 46241
Frequently Asked Questions
What type of property is this?
Warehouse - Industrial building with I-3 zoning and access to I-465 within one mile.
Where is this warehouse located?
The property is located at 2334 Production Drive Indianapolis, IN.
What is the asking price?
The asking price for this property is $4,350,000.
What are key features of this property?
This property features: 48,896 SF industrial warehouse building; I‑3 zoning; Less than one mile from I‑465
