Indianapolis Industrial Market Report

Conditions differ in epicenters of speculative construction. Indianapolis was one of just seven major industrial markets to add more than 50 million square feet of space over the past four years — a feat that expanded inventory by 18 percent and pushed the number of transportation and warehousing jobs to a record mark. In 2024, the metro once again ranks among the top 10 markets for deliveries, despite a recent pullback in project starts fueled by a slowdown in large-scale leasing activity and construction financing hurdles. Completions, however, are not as widespread as in prior years. Instead, deliveries are concentrated in two areas. In the Plainfield-Avon area, speculative space underway may be well received over the near-term, as local vacancy is more than 300 basis points below its long-term average. Meanwhile, in Johnson County, upcoming completions in Franklin and Whiteland may register a harder time securing tenants as vacancy in the submarket they comprise entered the year 470 basis points above its trailing 10-year average.