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Vacancies Stay Low for Indy’s Industrial Market

Demand for industrial space shows no sign of slowing in the Indianapolis market, as vacancy rates remain low at 4.4%, Avison Young reported. That’s holding true despite a large new construction pipeline, with much of it speculative development.

“We are continuing to see a lot of large leases keeping the vacancy rate down even as we build millions of square feet of new speculative space throughout the market,” said Sean McHale, principal in Avison Young’s Indianapolis office. “The big question is how long the strength of the market will continue, as the cost of construction continues to rise and labor and supply shortages continue to be prevalent throughout the area.”

During the second quarter, new tenants absorbed approximately 2.48 million square feet in the Indianapolis industrial market, according to Avison Young. Cushman & Wakefield projected the Q2 figure at 2.3 million square feet, a year-over-year increase of 10%.

Pictured: Jones Development Company’s Whiteland Exchange, under construction in Whiteland, IN

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About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).

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