Indianapolis Office Market Report

Firms migrating to the suburbs. The largest suburban submarket in the metro by inventory, Northeast County, registered a 30-basis-point drop in vacancy during the first quarter. Spanning the three-month period, tenants absorbed over 140,000 square feet of space. Positive local demand enabled the overall suburban vacancy rate to slide 20 basis points to its lowest point since mid-2020. During the remainder of this year, Northeast County will add just 60,000 square feet of new space, nearly half of which was pre-leased as of mid-May. This sets the table for further near-term vacancy compression that should aid the metro's overall availability, which is expected to be among the Midwest's lowest.