Finding the Right Office Space for Lease in Indianapolis

Looking for the perfect office space to lease in Indianapolis? With 25 years on the tenant-focused side of commercial leasing, our team at Cresa includes the most experienced professionals in the Indy market. We’re here to help you navigate the ever-changing world of commercial real estate – and in a market that includes high demand and increasing lease rates, we know what it takes to find the right office space to meet your needs. In this blog post, we’ve drawn from our experience to give you four essential tips for finding the right office space.


How to Find the Right Office Space in Indianapolis

Four critical factors impact office space leasing, whether here in Indianapolis or in another metro area. These factors are location, size, amenities, and budget. Let's take a closer look at each.


1. Location

The primary location-related considerations include the following:

  • available square footage
  • parking space
  • access to transportation
  • proximity to competition


Accounting for your unique office space needs while comparing what’s available for lease can become extremely complex. Consider leveraging the tools and expertise of our team; it can make all the difference. First, we can help you determine the location criteria that is most important to your business. Additionally, a site suitability analysis can help you score, rank, and weigh your site selection factors. Then we can help you evaluate prospective locations based on your priorities.


2. Size

When contemplating what size office space you need to lease, it’s essential to consider how you plan to use it. For example:

  • Will you need a conference room?
  • Will you want a large executive office space for the CEO?
  • Will you need workspaces for the rest of the team?


Other spaces to consider are a break room or kitchen area, copy station, file storage space, and a reception area. Check out our office space calculator to help you determine the square footage required to meet your needs best.


3. Amenities

Newly added building amenities have enhanced many new commercial leases. In numerous locations, you will have access to various amenities, such as:

  • Dry cleaners
  • Daycare facility
  • Gym/Workout Area
  • Media Room
  • Storage Facilities

Note that these amenities are in addition to tenant improvements (or "TI"s). In office space leasing, TIs refer to the office space square footage, and examples can range from new flooring to walls to windows. The landlord may provide these custom alterations to create a unique space for your business's needs, and it’s certainly to your advantage to have an experienced representative to help you negotiate specific improvements into your lease agreement.


4. Budget

When calculating your office space leasing budget, in addition to the lease rate, be sure to factor in incidentals, moving, renovations, and potential rate increases. Incidentals, like utilities, maintenance, and janitorial service/supplies, will add up and are worth planning for.

Budget is another area where employing a commercial real estate advisory firm can save you time, money, and sanity. Our advisors work as your unbiased advocates to identify the properties that work best for your budget and negotiate on your behalf regarding lease rates and terms – all to ensure you achieve the best outcome possible.


Office Space Leasing: Market Outlook

Like many metro areas, the hybrid work model's increased popularity has impacted the Indianapolis market, and demand for office space leasing has dropped dramatically. As a result, the area has seen a slowdown in office construction projects. (This, in contrast to a rise in manufacturing construction projects.) Additionally, office space absorption has dropped considerably as more office tenants have exited leases than entered new leases. (In commercial real estate, "absorption" or "absorption rate" refers to commercial real estate sold or leased over a specific period in a particular market.)

On the upside, a subsequent shift has occurred toward landlords offering more desirable benefits to new office space tenants. As a result, lessees can enjoy added amenities, an enhanced ability to negotiate tenant improvements, and even a nominal decline in office lease rates. (This, again, in contrast to the industrial market, which is seeing a steep rate increase.)

With new projects stalling, the supply will likely become limited when the market rebounds and demand increases. Consider that Indy's unemployment rate is well below the national average and dropping, indicating that the market here will rebound faster and office space demand will increase sooner than in other locations. That makes now an ideal time to take steps toward leasing your office space.

If you’re interested in the market’s competitiveness, remember that the “availability rate” is a more accurate determinant of available properties than the direct “vacancy rate.” (The former includes any property on the market for lease or sublease, and the latter only includes those actually vacant.) That’s why we track occupancy data in real time, so you will always know what office spaces are currently available.


Final Notes on Office Space Leasing in Indianapolis

As you look for office space to lease and consider these essential factors, remember that you have experts available to you. Our tenant-focused consultants can walk you through the process and represent your interests – from location selection to lease signing. Contact us today. We're here to help.