Indianapolis office market report

Q4 2021

The Indianapolis market continued to exhibit very strong economic conditions, as unemployment neared all-time lows, and the market has now added more jobs than it had prior to the pandemic. Current conditions and uncertainty, coupled with the sudden change in office occupiers’ future workplace strategies have led to two consecutive years of laggard leasing activity.


Economic conditions

Unemployment in Indianapolis is now at 2.0 percent as of December 2021 and has recovered all job losses and added 8,000 more since April of 2020. 


Recovery rate

Vaccination rates are lower than the national average at 57.7% for Marion County, and 52.6% for the entire Indianapolis MSA.


Return to the office

Several large employers have delayed the return to the office which were slated for the beginning of 2022 due to Omicron variant concerns. 


Office demand

Negative net absorption has tallied nearly 2.0 msf, totaling -4.8% of existing office space in the market. 


Office supply

Year-end 2021 vacancy rate of 22.6% is a record high for the Indianapolis market, with the sublease rate nearing record highs. 


Capital Markets

Indianapolis Office investment activity increased to $535.5 million since 2020 as investors remain wary of post-COVID market fundamentals.

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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.

Explore different topics like the latest office market pricing trends and analysis of Indianapolis' current office real estate market conditions. Gain a better understanding of Indianapolis' office real estate outlook and stay ahead of current office space trends. Make smart decisions when it comes to investing in office properties in Indianapolis' competitive office real estate market. Avison Young is your trusted source for commercial real estate office market insights in Indianapolis.

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