Indianapolis office market report

Q3 2025

The Indianapolis office market continues to show bifurcation between the CBD and downtown submarkets, and suburban areas. While leasing activity has fallen, high quality assets in the northern suburbs have inflated absorption metrics across Class A. Additionally, minimal availability in the E. Carmel submarket seems to be rolling over to the Meridian Corridor, who saw a 7.5% improvement YoY and sits ahead of pre-COVID levels.

1.3 msf

Total leasing activity through Q3 2025

Indianapolis office leasing activity totaled 1.3 million square feet (msf) through Q3 2025, reflecting a 11% decrease compared to YTD 2024. The existing activity in 2025 has been driven by the northern suburban submarkets like E. Carmel, the 1-69 Corridor and the Meridian corridor who saw YoY decline in availability.

+1.8 msf

Net absorption in northern submarkets since 2015

While absorption has declined in downtown Indianapolis, absorption in the E. Carmel, I-69 Corridor, Keystone, and Meridian Corridor submarkets have driven much of Indianapolis’ demand in the last decade. This demand includes +792k sf absorption in the last two years alone.

-7.5%

YoY decrease in availability in the Meridian Corridor

The meridian corridor submarket saw the largest shift in availability rates from Q3 2024 across all of Indianapolis. At 18.4%, the submarket is taking advantage of low availability in neighboring submarkets and shifted below overall market averages. Keystone, Castleton and the CBD currently hold the largest availability rates across the market.

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Get in-depth office market reports and insights from commercial real estate experts in the Greater Indianapolis area. Avison Young advisors look at Indianapolis commercial real estate activities and the latest Indianapolis statistics to provide you expert market research on Indianapolis' office properties.