Indianapolis Office Rent Price & Sales Report

2020 Office Space Rent & Sales

  • $20.47 2020 Avg. Asking Rent
  • 1.84% Y-o-Y Avg. Asking Rent Change
  • 15.81% 2020 Office Vacancy Rate
  • $80.7M2020 Total Office Sales
  • $143.51Avg. Sale Price/SF

Indianapolis office price per square foot in 2020 was $20.47 on average. This marked a +1.84% change in office space price per square foot compared to the previous year. The local office market recorded an average vacancy rate of 15.81% across all asset classes combined. The 7 transactions that closed here throughout 2020 amounted to a total sale volume of $80.7M. Indianapolis office space commanded an average sale price per square foot of $143.51.

Average Rent by Office Class

2020 Average Office Rent per Square Foot

  • Indianapolis Class A Office Space$23.86
  • Indianapolis Class B Office Space$19.40
  • Indianapolis Class C Office Space$16.45
  • Indiana Class A Office Space$24.00
  • Indiana Class B Office Space$19.58
  • Indiana Class C Office Space$16.80

Indianapolis, IN Office Asking Rents by Class

Average office rent in Indianapolis rested at $20.47 per square foot in 2020. As would be expected, office rent price showed some variation from one asset class to another. As such, the asking rent for class A office space in Indianapolis averaged $23.86 per square foot. Across all submarkets, class B office space recorded an average asking rent of $19.40 per square foot. Meanwhile, assets encompassing class C office space saw asking rents of $16.45 per square foot, on average. Comparably, statewide Indiana average office rents by class in 2020 were: $24.00 per square foot for class A office space; $19.58 per square foot for class B office space; $16.80 per square foot for class C office space.

2020 Office Vacancy Rates in Indianapolis

Submarket Asking Rents Vacancy Rates
Keystone $22.81 15.27%
Downtown $22.62 15.45%
Carmel - Meridian Corridor $21.93 15.64%
Fishers $21.61 32.04%
East $20.52 11.54%
South $19.24 8.57%
Park 100 $18.96 17.03%
Castleton $18.45 18.10%
College Park $18.19 14.47%
Midtown - Uptown $16.94 16.24%
West $16.03 13.84%
Data provided by Commercial Edge
Submarket differences in factors such as property mix, degree of accessibility, and availability of amenities influence not only variation in office rent price, but also in vacancy rates. The overall office vacancy rate on the Indianapolis market was 15.81% in 2020. Looking at the market stats on a more granular level, data shows that the lowest office vacancy rate in Indianapolis was 8.57% in the South submarket, while the highest office vacancy in the market was 32.04%, recorded in Fishers.

Office Spaces for Rent in Indiana

Indianapolis Office Sale Price per SF

  • $143.512020 Avg. Price per SF
  • 19.55%Y-o-Y Avg. PpSF Change
  • $80.7M2020 Office Sales Volume
  • 72020 Number of Transactions

Indianapolis, IN Sale Price per SF Trend

  • Indianapolis Avg. Sale Price per SF in 2020$143.51
  • Indiana Avg. Sale Price per SF in 2020$178.63
Indianapolis office space cost in 2020 marked a +19.55% change compared to the previous year. The sale price for office space in Indianapolis averaged $143.51 per square foot in 2020, across all market subdivisions and asset classes. Conversely, the statewide Indiana average office sale price during the same time period was $178.63 per square foot.

2020 Office Sales Volume

  • Indianapolis, IN Total Office Sales Volume in 2020 $80.7M
  • Indianapolis, IN Total Number of Office Sales Closed in 2020 7
A total of 7 deals closed on the Indianapolis office market in 2020, adding up to a yearly sales volume of $80.7M. Notably, the largest transaction on the market saw Three Woodfield Crossing change hands for $49,000,000 on 9/4/2020.

Largest Indianapolis Office Sales in 2020

Property name Address Date Price
Three Woodfield Crossing 8425 Woodfield Crossing Blvd 9/4/2020 $49,000,000
Lakefront at Keystone - Lakefront 15 9190 Priority Way West Drive 6/15/2020 $16,000,000
Harrison Centre 9105 East 56th Street 6/15/2020 $5,000,000
Lakefront at Keystone - Lakefront 73 9330 Priority Way West Drive 3/12/2020 $3,670,858
Venture Center 9550 Zionsville Road 1/7/2020 $2,714,000
Data provided by Commercial Edge

2020 Office Construction in Indianapolis, IN

  • Indianapolis, IN Total SF completed in 2020 193,000
  • Indianapolis, IN Total SF under construction in 2021 132,755

During 2020, 193,000 square feet of new office space were delivered across the market. At the close of 2020, the Indianapolis office inventory included 2 buildings equal to or larger than 25,000 square feet, which comprised 193,000 square feet of office space. Looking forward, development activity throughout 2021 is estimated to add 132,755 square feet of office space to the market, before year-end.

Largest Office Properties Recently Completed in Indianapolis
Office building Address SF Completed
Elevator Hill NEC East Washington Street & Pine Street, 46202 375,000 2022
HqO at 16 Tech 1220 Waterway Blvd, 46202 105,755 2021
The Union 601 601 South Meridian Street, 46225 67,000 2021
16 Tech - Innovation Building 1 1210 Waterway Blvd, 46202 120,000 2020
8711 at River North 8711 River Crossing Blvd, 46240 78,000 2020
Hub & Spoke 8100 East 106th Street, 46256 94,000 2019
4304 Gilman Street 4304 Gilman Street, 46222 30,000 2019
Eye Surgeons of Indiana Headquarters 9202 North Meridian Street, 46260 50,000 2018
301 East Market Street 301 East Market Street, 46204 174,000 2017
Roche Diagnostics - Building E 9115 Hague Road, 46256 111,151 2017

Worth noting among recent office completions on the Indianapolis market is Elevator Hill, which is currently the largest new office development in the city, at 375,000 square feet.

Data provided by Commercial Edge

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This market stats report is based on analysis of city-level data that includes office properties equal to or larger than 25,000 square feet in size. Averages were calculated based on values dated January 1st 2020 through December 31st 2020. Construction pipeline data represented herein is valid as of April 2021. The information on this page was compiled using data provided by CommercialEdge, a market intelligence solution which offers comprehensive real market knowledge on all Indianapolis commercial properties sized 25,000 square feet or larger.

While every effort was made to ensure the accuracy of the data presented in this report, the information is provided “as is” and neither CommercialCafe nor CommercialEdge can guarantee that the information provided is complete.