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Market Report

Indianapolis Retail Market Report

4Q 2023

In-Migration Trends Support Strong Retail
Fundamentals, Particularly in Northern Areas

Population growth aids marketwide tenant demand. In 2023, net in-migration in Indianapolis will surpass 14,000 new residents for a second consecutive year. This gain is partially attributable to the metro’s expanding economy amid notable job growth through August. Reflecting the high levels of retailer competition, Indianapolis’ average asking rent has risen 22 percent over the three years trailing June 2023, the second-largest gain among major Midwestern markets in that span. Although this trend was more prominent within the single-tenant segment, multi-tenant demand has also increased substantially. The property type entered July with a vacancy rate of 2.7 percent, its lowest measure on record. 
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