Indianapolis Industrial Figures Q1 2026

- Indianapolis’ industrial recovery showed no sign of fading as 4.9 million sq. ft, of space absorbed this quarter. As a result, the overall vacancy rate fell to 6.9%, on par with Q2 2023 vacancy rates.

- The last three quarters have seen the greatest absorption of industrial space since Quarters 2-4, 2022.

- The East submarket contributed the most with 1.87 million sq. ft. absorption. However, it still has the highest vacancy at 13.4%. 

- By contrast, the popular Northwest submarket’s absorption was 910,000 sq. ft. because it is effectively fully occupied. Its vacancy rate is 2.2%. 

- This quarter’s $6.35 per sq. ft. asking rate was 5.5% higher than the same quarter last year, driven less by submarket occupancy rates and more by lease sizes and flex space needs.