Q1 2022 Indianapolis Market Report
In Q1, recovery continues for the Indianapolis office market, even with a slight drop in occupancy, the market appears to have plateaued. The pipeline has returned to pre-pandemic levels with nearly 400,000 s.f. under construction/renovation in the CBD, Midtown and North Meridian/Carmel submarkets; the outlook is promising. Direct asking rental rates saw an increase, with Class A spaces leading the rate growth. Tenants continue to evaluate space needs as landlords look to create more adaptable space for this changing market.
Indianapolis industrial market continues to post historic positive metrics in Q1 2022. Demand continues to outpace supply which is driving vacancy below 4%, a record for the Indianapolis industrial market. Under construction projects are nearly 170% above Q1-21 levels and outpacing national averages. Other economic indicators are improving as the quarter saw pre-pandemic travel activity and posted another increase in job growth.