Indianapolis industrial market report
Q2 2024
The Indianapolis industrial market continues to face challenging market fundamentals with increasing vacancy rates, softening leasing activity and negative net absorption. The market is still recovering from the surge of construction activity in 2021 and 2022 which has led to a significant reduction in new development. Leasing activity through the first half of 2024 was down 24% when compared to the first half of 2023 with a total 5.5 million square feet (msf) leased year-to-date.
10.2%
Overall vacancy increases
Overall vacancy increased 70 basis points up to 10.2% from the prior quarter with sublet vacancy reaching record breaking levels of 1.4% of total inventory.
5.5 msf
Net absorption
Leasing activity has continued to soften with a total of 5.5 msf leased throughout the first half of 2024 with 3.2 msf transacting in the second quarter of 2024.
-186,731 sf
Net absorption effected by increase in sublet space
Net absorption was recorded at -186,731 sf at the end of the second quarter, largely driven from the increase in sublet space becoming vacant.
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