Indianapolis Retail Market Report
Low Unemployment and Limited Construction Aid Vacancy Compression
Strong employment performance fuels retail sales. The second quarter of 2022 opened with Indianapolis notching its lowest unemployment rate on record. The measure was among the smallest of all major U.S. metros as Indianapolis witnessed little negative impact to its labor market. At the onset of the health crisis when restrictions were in place, almost all major Midwest markets saw a reduction in retail sales. Indianapolis was the only metro in the region that did not sink below 1 percent growth year-over-year in 2020. After a resilient 2020, Indianapolis still experienced similar gains to other Midwestern markets as they underwent rebounds from their pandemic headwinds. The metro's retail sales are expected to remain elevated relative to 2019 growth rates this year, driving vendor demand for tangible retail spaces in the market.