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Market Report

Indianapolis Retail Market Report

2024 Investment Forecast

Far-Out Counties Anchor Marketwide Trends;
Investors Target Low Supply Growth Areas

Vacancy stays near its historic low, despite upward momentum. Indianapolis’ vacancy rate will stay below 4 percent for the third straight year in 2024, a measure that had not been achieved in any prior period since at least 2007. Supporting this strength, the metro’s far-out counties and northern suburbs should preserve even tighter conditions this year. Entering 2024, Morgan, Shelby, Boone, Hendricks and the northern portion of Hamilton County all held measures below 3 percent and could tighten even further, as nominal local construction directs the majority of retailers to existing floor plans. Meanwhile, areas spanning the northern portion of the Interstate 465 Loop, as well as Carmel and Fishers, exhibited downward vacancy momentum associated with retailers’ desire for space near expanding residential hubs. Still, near-term momentum is slowing on a market level. Indianapolis is projected to record the third-lowest median household income growth rate among major U.S. metros this year, limiting retail sales growth, and subsequently retailer expansion plans. 
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