Indianapolis Office Figures Q1 2026

- Indianapolis’ office market sputtered this quarter as vacancy rose less than 1 percent and absorption fell into negative inventory. 

- Class A space had the highest vacancy rate at 21.1%, compared with Classes B at 20.4% and C at 9.7%.

- Office space conversions continued this quarter. In Downtown, the Capital Center South’s net rentable area deceased by 87,000 sq. ft. as renovations began to make the top seven floors hotel suites.

- Office rates eked out an average $0.21 increase per square foot.

- Only a few submarkets saw asking rate increases, impacting the overall rate. The South’s asking rate rose the most – $1.70 per sq. ft. Keystone was second with a $0.71 per sq. ft. hike.