Indianapolis Retail Market Report

Low supply pressure environment remains. With Indianapolis’ retail vacancy rate nearly the lowest in the country, elevated development could be warranted. Instead, modest deliveries are concentrated in northern areas like Carmel and Zionsville, where the largest upcoming project — a 100,000-square-foot multi-tenant component of a larger mixed-use plan — is set to deliver. North County, including Carmel, is likely to maintain vacancy near 2 percent, while the Zionsville development arrives in the submarket of Boone and Hendricks counties, which entered this year with a metro-low 1.6 percent vacancy rate. Metrowide, average rent growth will slow with expected net absorption reductions; however, multi-tenant vacancy entered 2025 at 0.4 percent, putting tremendous upward pressure on segment rents. West Marion County, featuring the Speedway, is tied with the Far West Counties for the lowest multi-tenant rate of major submarkets after the metric fell 330 basis points to 0.2 percent, placing a premium on any space that becomes available.