Indianapolis Office Market Report

Minimal development steers tenants to existing properties. Despite expanding for the fourth consecutive year, Indianapolis’ vacancy rate in 2023 will hold as the second lowest among major Midwestern markets. A slim inventory growth rate and long-term commitments from local businesses help support this. Entering April of this year, Indianapolis was in the bottom quartile of major metros for post-2019 inventory growth. Lease renewals from notable local employers also contribute to Indianapolis’ availability registering below the national average. Since 2021, a number of 20,000-plus-square-foot renewals have been executed with terms extending through at least 2023. HNTB and Lids headline these commitments, retaining more than 90,000 square feet each.