Indianapolis Office Market Report

Office landscape returning to more familiar conditions this year. Net absorption is expected to reach a level exceeding the 2015-2019 average, as Indianapolis’ gross metropolitan product is projected to expand by 3 percent — the highest among major Midwest markets in 2025. Corporate investment is partially to credit, as the metro’s count of traditionally office-using roles is slated to grow at a rate above all major U.S. markets. Although these additions will coincide with a five-year high delivery slate, most of the space at these properties is accounted for. Veterinary medicine company Elanco will finish moving into its new headquarters early this year — a 200,000-square-foot building — while automation supplier Endress+Hauser will occupy a 100,000-square-foot facility in Greenwood with its distributor GEB Co. These encouraging move-ins have the potential to steer other companies seeking office space to the metro’s existing stock, which may buttress a second year of noteworthy vacancy compression.