Indianapolis Retail Market Report

New residents translating imperfectly into sales. The market’s multifamily vacancy rate tightened 230 basis points year over year as of the second quarter, bringing more cushion to retailers and aiding demand for storefronts. In this way, Indianapolis’ recent demographic momentum, with about 55,000 relocating here on net between 2020 and 2025, should also echo into 2025. Even so, softer job growth in the first half may mean fewer promotions and raises, limiting per-capita spend. Consistent with these mixed demand drivers, Indianapolis’s quarterly retail net absorption declined to around negative 490,000 square feet in the spring. More than 550,000 square feet of planned move-ins in the second half of the year may help to compensate for space vacated earlier.