Future Cities
Indianapolis Market
2024 North America Industrial Big-Box Review & Outlook
April 16, 2025 5 Minute Read
Supply & Demand
Over 40 million sq. ft. of big-box space completed construction in 2023, setting a local record and ranking second in North America, behind only Dallas-Ft. Worth. This massive development increased the overall vacancy rate to 11.6%, more than double 2022’s 5.6% rate. Despite 15.2 million sq. ft. of lease transaction volume, which was on par with 2022, vacancies increased. Net absorption exceeded 10 million sq. ft. for the second consecutive year, reaching 10.4 million sq. ft. 3PLs dominated transaction volume, accounting for 42.3% of total leasing activity, as they capitalized on the market’s central location and numerous logistics challenges.
No market had a larger year-over-year decrease in space under construction than Indianapolis, which ended 2023 with only 4.6 million sq. ft. under construction. This was significantly less than the 30.1 million sq. ft. under construction at the end of 2022. The sharp reduction in construction completions this year will help vacancies decline, but it may take until 2025 or later for vacancy rates to return to the 5.8% mark seen in 2022.
Figure 4: Share of 2023 Leasing by Occupier Type
Source: CBRE Research.
Figure 5: Lease Transaction Volume by Size Range
Source: CBRE Research.
Figure 6: 2023 Construction Completions vs. Overall Net Absorption by Size Range
Figure 7: Direct Vacancy Rate by Size Range
Figure 8: Under Construction & Percentage Preleased
Figure 9: First Year Taking Rents (psf/yr)
Source: CBRE Research.
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Industrial & Logistics Research
James Breeze
Vice President, Global Industrial and Retail Research
John Morris
President, Americas Industrial & Logistics, Advisory Services
