Indianapolis industrial market report
Q4 2024
The Indianapolis industrial market experienced a notable slowdown in leasing activity in Q4 2024, with only 1.6 msf leased, contributing to a total of 12 msf for the year, a slight decrease from 2023. Vacancy rates increased to 10.6%, largely due to an influx of new big box inventory over 500,000 sf. Construction activity has also declined significantly, with only 4.6 msf under development, down nearly 45% from the previous year. Overall, the market is adjusting to the increased supply and subdued demand.
1.6 msf
Leasing activity
A total of 1.6 msf was leased in Q4 2024, down 51% from the prior quarter and lagging the past two-year quarterly leasing volume of 3 msf.
49.5 msf
Big box inventory
Big box inventory over 500,000 sf flooded the market totaling 49.5 msf of new product delivered to the market since 2019.
10.6%
Overall vacancy
Overall vacancy increased 100 basis points from Q4 2023, reaching 10.6% at year-end 2024, with 9.1% of that being direct vacant space.
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