Market Report
Indianapolis Retail Market Report
3Q 2026
Demand Tailwinds Trail Rising New Supply,
Yet Occupancy Remains High
Retail vacancy tested by rising openings and measured leasing. Metro vacancy entered the second half of the year at 3.5 percent, extending an 18-quarter stretch below 4 percent, despite a 30-basis-point rise since year-end 2025. Supply additions exceeded net absorption by eightfold in the first half, pushing vacancy higher. Though leasing activity may remain subdued as developers deliver a similar volume of space in the second half, several factors could help keep vacancy near current levels through year-end. Retail sales growth, topping 6 percent in the year ended June, combined with steady population growth of about 1 percent per year, provides a supportive backdrop for retailers.
TO READ THE FULL ARTICLE
