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Regional Summaries

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Indianapolis, IN

Apartment
The 118,260-unit Indianapolis apartment market had a big year in 2015. Despite 2,794 units completing construction, the most in a year since 1999, the vacancy rate was down 20 basis points over the year to a moderate 6.0%. The rate edged down 10 basis points in the fourth quarter as more than 1,000 units completed construction. Rent gains were solid in 2015, as the average asking rent increased 3.3% to $781 per month, and the average effective rent rose 3.4% to $749 per month. The fourth quarter gains were 0.8% and 0.9%, respectively. Overall rents increased 0.2% by both measures in January 2016. VIEW APARTMENT LISTINGS >
Industrial
The 133.3-million-square-foot Indianapolis warehouse/distribution market was balanced in 2015, with 976,000 square feet of construction completed and 794,000 square feet of net absorption. The vacancy rate edged up 10 basis points over the year and 20 in the fourth quarter to 11.6%. Rent gains were smaller in 2015 than in 2014 as the average asking rent increased 1.0% to $4.00 psf, and the average effective rent rose 1.4% to $3.64 psf. The fourth quarter gains were 0.5% and 0.6%, respectively. Within Reis submarkets, the vacancy rate increased to 12.0% in January, as net absorption was negative, and rents were flat. The 14.8-million-square-foot Indianapolis Flex/R&D market remained quiet in 2015, with no new supply and just 17,000 square feet of net absorption for the year. The vacancy rate ended 2015 at 17.9%, down 20 basis points over the year and during the fourth quarter. The average asking rent increased 0.9% over the year to $6.85 psf, with the average effective rent up 1.2% to $5.93 psf. The fourth quarter gains were 0.3% and 0.5%, respectively. There was little change in January. VIEW INDUSTRIAL LISTINGS >
Office
The 32.8-million-square-foot Indianapolis general purpose, multi-tenant office space market had a moderately positive year in 2015, but it remains weak. The vacancy rate remained high in the fourth quarter at 19.3%. The rate was 19.2% in January 2016. The 2015 rent increases were the largest of the past few years, as the average asking rent increased 1.4% to $18.33 psf, and the average effective rent rose 1.5% to $14.58 psf. The fourth quarter gains were 0.5% and 0.6%, respectively, with the effective average up a penny more in January 2016. VIEW OFFICE LISTINGS >
Retail
High vacancy continues to plague the 18.2-million-square-foot metro Indianapolis community-neighborhood shopping center market, limiting new development. The community-neighborhood center vacancy rate was up 30 basis points for the fourth quarter of 2015 and 20 over the year to 15.5%. Rents reflect the stagnation. In the fourth quarter, the average asking rent increased 0.5% to $15.05 psf, with the average effective rent up 0.3% to $12.91 psf. The full year gain, however, was just 1.1% by both measures. Rents and occupancy were flat in January 2016. VIEW RETAIL LISTINGS >

Source: Data provided by Reis, inc.

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