Indianapolis Office Market Report

Demand concentrated after strong 2025. Indianapolis’ office market recorded its strongest annual net absorption since 2017 last year. At the same time, substantial employment losses, including pronounced cuts in traditionally office-using sectors, appear to be taking a toll in 2026. While hiring has improved more recently, leasing momentum may be increasingly concentrated ahead: Class B/C space posted roughly 300,000 square feet of net relinquishment during the first half, while Class A continued to see further positive absorption. Activity in the latter segment during the year ended in September was largely concentrated in the northern suburbs along Interstate 465 and in downtown.