Q4 2024 Indianapolis Industrial Report
In the fourth quarter of 2024, the Indianapolis industrial market exhibited mixed performance indicators. The overall vacancy rate declined for the first time since 2022 to 10.7%. This improvement is attributed to a slowdown in speculative construction, which limited new supply and helped stabilize vacancy levels. Despite this positive trend, leasing activity softened, with only 1.6 million square feet leased in Q4, marking a 51% decrease from the prior quarter and falling below the two-year quarterly average of 3 million square feet.
The market also experienced a modest positive net absorption in Q4, a significant improvement from the nearly 1 million square feet of negative absorption reported in the previous quarter. However, year-to-date net absorption remained negative at approximately -2.28 million square feet, primarily due to substantial move-outs earlier in the year. Average asking rental rates continued to rise, indicating sustained demand for industrial space despite elevated vacancy rates.
The market also experienced a modest positive net absorption in Q4, a significant improvement from the nearly 1 million square feet of negative absorption reported in the previous quarter. However, year-to-date net absorption remained negative at approximately -2.28 million square feet, primarily due to substantial move-outs earlier in the year. Average asking rental rates continued to rise, indicating sustained demand for industrial space despite elevated vacancy rates.