Q3 2025 Indianapolis Office Market Report
The Indianapolis commercial real estate market experienced mixed conditions in Q3 2025, with the office and industrial sectors trending in opposite directions. Overall, the data reflects continued challenges in the office market, while industrial properties remain comparatively strong and stable.
In the office sector, the average asking rent decreased to $22.85 per square foot, while the vacancy rate rose to 21.25%. This increase in vacancy suggests ongoing softness in demand and provides tenants with increased negotiating leverage. Elevated vacancy levels continue to weigh on rental rates and signal a cautious outlook for office absorption in the near term.
In summary, Q3 2025 results indicate that the Indianapolis office market remains under pressure.
In the office sector, the average asking rent decreased to $22.85 per square foot, while the vacancy rate rose to 21.25%. This increase in vacancy suggests ongoing softness in demand and provides tenants with increased negotiating leverage. Elevated vacancy levels continue to weigh on rental rates and signal a cautious outlook for office absorption in the near term.
In summary, Q3 2025 results indicate that the Indianapolis office market remains under pressure.