Indianapolis industrial market report

Q2 2023

The Indianapolis industrial market through the first half of 2023 is experiencing a tale of two markets, as vacancy in the largest building size bucket approaches double-digits yet the smallest building size bucket remains sub-3.0%. As increased deliveries continue to hit the market for the remainder of 2023, a symptom of record ground-breakings in the first three quarters of 2022, the market will have a chance to absorb delivered vacant space. Due to economic and financial uncertainty and the rising cost of construction loan financing persistent for +12 months, ground-breakings in 2023 have slowed significantly, indicating an expected gap in new available space in 12-18 months. Near-term slowing activity and leasing could very easily shift to mid-term accelerated demand needs if the economic and financial markets find certainty and growth, and rental rates could jump significantly due to lack of available space.

New inventory delivered since 2019 as percent of total

Makes Indianapolis the 6th largest growing inventory on a percentage basis nationally.


Percentage of all deliveries for buildings 500.0 ksf+ since 2020

Development pipeline focused disproportionally on the large-box space.

19.2 msf

Under construction

Amount of currently under construction +500.0 ksf projects still yet to deliver in the market.


Industrial vacancy rate (bldgs. 500.0 ksf+)

Amount of currently under construction +500.0 ksf projects still yet to deliver in the market.


Industrial vacancy rate (bldgs. 20.0-99.9 ksf)

The smallest building size remains the tightest in the market.

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