Indianapolis office market report

Q2 2026

Indianapolis office market
Indianapolis’s office market in Q2 saw a decrease in leasing activity, availability stayed range bound rather than trending clearly in either direction, and absorption remained negative for a second consecutive quarter. Class A is still capturing the bulk of leasing demand, but that has not translated into positive occupancy gains, its continued negative absorption remains the market’s biggest headwind.
370k sf

Leasing activity in Q2 2026

Indianapolis office leasing activity slowed to roughly 370k sf in Q2 2026, down 33% from Q1 and down 9% from Q2 2025. Class A held up best with 221k sf (60% of total activity) and roughly flat YoY. Class B pulled back sharply, down 41% YoY and 60% QoQ.
Notable Q2 leasing activity included Koola Logistics signing a new 38k sf lease at 13085 Hamilton Crossing Blvd in Carmel, Little Star Center renewing 33k sf at 12650 Hamilton Crossing Blvd (also Carmel), and Indiana University Health taking 27k sf at 7602 Woodland Dr in the Park 100 submarket.
-26k sf

Net absorption in Q2 2026

Indianapolis posted its second straight quarter of negative net absorption, -26k sf in Q2 2026, following -46k sf in Q1. That is a sharp reversal from the +419k sf posted in Q2 2025 and the +206k sf in Q4 2025.
Class A remained the main drag, posting its second consecutive negative quarter (-26k sf, following -29k sf in Q1). Class B improved QoQ drastically, posting an absorption of 27k sf, up from -23k sf in Q1, but still nowhere near Q2 2025’s absorption of 208k sf. 
18.8%

Total availability in Q2 2026

Total availability held roughly flat at 18.8% in Q2 2026, down slightly from 19.0% in Q1 and down from 19.7% a year ago, but up from 18.6% in Q4 2025. 
Class A improved meaningfully from 21.9% a year ago to 19.9% in Q2, though it ticked up slightly in Q1. Class B space improved slightly QoQ to 19.9% but was up from 19.5% in Q2 2025.

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