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Market Report

Indianapolis Industrial Investment Forecast

2022 Outlook

Expanding Presence of National Firms Drives Historically Low Vacancy and New Investment

High-profile tenants and third-party logistics providers escalate leasing. Indianapolis' location has drawn a number of e-commerce and logistics firms into the metro in recent years fostering the city's emergence as a necessary operations destination for high-profile firms. Walmart and Amazon recently inked deals for a combined 1.5 million square feet in late 2021 with Walmart also committing to an 800000-square-foot property currently underway in Hancock County. On top of this the metro's intermodal facility has allowed for direct shipments from Asia since 2013 sparking leasing activity from a plethora of logistics companies particularly near the airport and rail yard in western Indianapolis. This demand led to a 240-basis-point vacancy retreat in 2021 that prompted an increase in project starts — activity that will translate to a substantial quantity of space being delivered this year. While the influx of modern facilities is set to slightly increase vacancy in the short term the year-end rate will rank as the second lowest figure on record.

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