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Market Report

Indianapolis Retail Market Report

3Q 2022

Market Hits Records in Vacancy and Rent Growth;
Far North Suburbs Bolstered by National Chains

Historically low completions support hot retail market. Supply additions during the 12-month period through June were down over 30 percent compared to the previous year, and nearly 60 percent below the equivalent span ending in 2020. Slower construction is helping bolster retail market fundamentals, as expanding businesses have fewer available floor plans to choose from. For the seventh straight quarter, net absorption remained positive from April through June, which supported a 100-basis-point drop in vacancy year-over-year to a rate of just 4.0 percent. Furthermore, the average asking rent was up more than 7 percent annually at midyear, augmenting the 6 percent rise logged during the same span of 2021. As heightened demand will continue to strengthen market fundamentals, the 2022 rent lift is projected to be the strongest on record.

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