In Q3 2024, the Indianapolis office market showed signs of stabilization as the city continues to navigate the evolving post-pandemic landscape. While leasing activity remained solid, the shift toward hybrid and remote work has led to a continued trend of smaller office footprints, keeping vacancy rates relatively flat at 21.5%. Despite this, the market saw pockets of growth, particularly in the financial services and professional sectors, which grew by 5.5% and 2.3% year-over-year, respectively. These gains in employment, while positive for the economy, have not yet translated into significant absorption of office space, as many companies are rethinking their real estate needs in light of changing work patterns. As a result, landlords are adjusting expectations, offering more flexible lease terms and increased concessions to attract tenants.