Small Warehouse Spaces for Rent Near Me: A Guide to Industrial Space Leasing in Indianapolis

Are you a small business owner or entrepreneur looking for affordable warehouse space in Indianapolis? In this guide, we'll explore the availability of small warehouse spaces for rent in Indianapolis and brief you on three essential factors: vacancy rates, market trends, and the types of spaces available. As experienced local commercial real estate brokers, we'll break the info down in a way that helps you make sense of the local market – and takes the stress out of your search for small warehouse spaces for rent in Indianapolis.


Vacancy Rates

In real estate lingo, “vacancy rate” means the percentage of available rental spaces that are vacant or unoccupied. According to our Q4 2022 market report, the vacancy rate for industrial properties in the Indianapolis market is 5.13%, which is well below the 10-year average. What does that mean for you? It means there is a high demand for industrial spaces and little left to go around. So, if you need small warehouse space in Indianapolis, the sooner you start looking, the better. The industrial market is highly competitive right now, and speed matters. Working with an experienced commercial broker who knows the market will be a huge advantage.

E-commerce and logistics companies have partly fueled the demand for industrial space. While larger warehouse spaces have been in high demand, there has also been substantial interest in smaller industrial spaces, particularly from start-ups and small businesses. It’s worth noting that 2022’s year-end vacancy rate for buildings less than 250,000 sq. ft. was 2.6% – an all-time low in the market.

Reports show that leasing activity for industrial space in Indianapolis has been strong, with over 3.1 million square feet of industrial space leased in Q4 2022 alone. This leasing activity has been driven by new tenants entering the market and existing tenants expanding their space.

The average asking rent for industrial space in Indianapolis is $5.22 per square foot, representing an increase over the past year. This increase in rental rates is partially due to the tight vacancy rate and strong demand for industrial space in the market -- all reasons to leverage the services of a commercial broker.


Market Trends

Some exciting trends are happening in industrial real estate around here. First, there's been a surge in e-commerce and last-mile logistics demand, driving the need for smaller industrial spaces. Second, the growth of Indy’s manufacturing, food processing, and life sciences industries is driving the need for more specialized industrial spaces. These trends equal a strong demand for small warehouse spaces with limited availability and high leasing activity. (Recall the low vacancy rate we discussed above.)

Despite the limited availability, new development projects are underway, adding more industrial space to the local market. As a result, the market is projected to exceed 300 MSF by the end of 2023 – with 25% of the total delivered just since 2020. Specifically, approximately 2.2 million square feet of new industrial space was under construction in Indianapolis in Q4 2022, with an additional 1.9 million square feet of planned development. However, it’s important to note that most of this new construction is large warehouse space, so small warehouse space availability remains tight.

“Small warehouse space” has historically referred to those under 25,000 sq. ft., but these days that really can include anything under 50,000 sq. ft. As the Indianapolis industrial market continues to grow, small warehouse spaces are becoming increasingly popular among businesses looking for affordable, flexible storage solutions.

Furthermore, as e-commerce continues to drive demand for last-mile delivery solutions, small warehouse spaces near major transportation arteries are becoming even more valuable. These spaces allow businesses to distribute products efficiently throughout the Indianapolis area and beyond.

Overall, our industrial market presents many opportunities for businesses needing small warehouse space. However, with limited availability and high demand, it's important for businesses to work with a knowledgeable and experienced commercial real estate broker who can help them navigate the market and find the right space for their needs.


Types of Small Warehouse Spaces Available

As mentioned above, in today’s industrial market, “small warehouse space” includes a wide range of spaces under 50,000 square feet. Several types of small warehouse spaces are available in Indianapolis, depending on your specific needs.

For example, if you need a warehouse for storage, look for a distribution center or a small warehouse. If you need a warehouse for manufacturing or light industrial purposes, look for a flex space or specialized industrial space. Some of the most common types of small warehouse spaces available in Indianapolis include:

  • Light distribution centers
  • Light manufacturing facilities
  • Specialized industrial spaces
  • Flex spaces


Beyond square footage, here are other important factors to consider when looking for a small warehouse space for rent:

  • Ceiling height: Are you planning on racking? How high are your racks?
  • Overhead door height
  • Dock doors vs. Drive-in doors: Do you need them, and if so, which and how high? Drive-in doors typically range from 10 to 16 feet tall.
  • Sprinklers: Do you need them? Consider that older buildings may not have them if they’re grandfathered under previous building codes.
  • Parking: Do you need employee parking? Maneuverability for trucks/deliveries? Overnight parking for box trucks?
  • Fence/gate: What security measures do you need on the property?
  • Power: How much power needs to be available in your warehouse space?
  • HVAC: Do you need the warehouse space heated? Cooled?


Industrial Space Leasing

When leasing industrial space, there are several factors to consider.

  1. You'll need to determine the size and type of space based on your business requirements.
  2. You'll need to consider the location of the space and its proximity to your suppliers, customers, and transportation hubs.
  3. You'll need to negotiate the lease terms, including the length of the lease, the rental rate, and any additional costs, such as maintenance or utilities.

As experienced local commercial real estate brokers, we can help you navigate the leasing process and find the perfect small warehouse space for rent in Indianapolis. We have access to the latest market data and can help you negotiate favorable lease terms that meet your business needs and budget. Contact us today to learn more about our services and how we can help you find the right warehouse space for your business.