Indianapolis, IN Office Overview
Indianapolis’ office market includes the Central Nora, Northern Hills, and Park Meridian office submarkets. With a metropolitan population of nearly 2 million people, the metro area commercial real estate market is driven in large part by the health care and insurance industries, creating a strong demand for Class A Indianapolis white-collar office space.
As of mid-2017, the Greater Indianapolis office market encompasses over 36 million square feet of existing office space in properties larger than 50,000 square feet. As the capital of Indiana and the largest city in the State, the area's diversified economy results in a robust demand for office space.
Indianapolis, IN Office Inventory Description
In addition to the health care and insurance industries, financial services, manufacturing and education also contribute heavily to the demand for commercial real estate in Indianapolis. With a gross metropolitan product of over $118 billion annually, there is constant demand for white-collar office space in the Indianapolis metro area. Over 43% of the office space in Indianapolis is Class A or A+, while Class B office inventory adds another 55% of inventory to the office market.
The Castleton office submarket in Indianapolis sees consistently high demand for white-collar Class A office space. Located along both I-69 and I-465 this neighborhood is home to prime office buildings such as 9800 Crosspoint Boulevard, the Castleton Park Building projects, and the One Concourse office building on Crosspoint Boulevard.
Indianapolis, IN Commercial Inventory Breakdown
Total: 37,986,227 SF
By square footage range:
- 50k to 100k SF: 12,211,241 SF / 32.15% of total office
- 100k to 500k SF: 22,261,330 SF / 58.6% of total office
- 500k to 1M SF: 3,513,656 SF / 9.25% of total office
- Class A: 15,892,556 SF / 41.84% of total office
- Class B: 20,392,349 SF / 53.68% of total office
- Class C: 544,745 SF / 1.43% of total office
Indianapolis, IN Green Office Space
The 2017 National Green Building Adoption Index looked at office properties in 30 large U.S. metros and found that the percentage of green certification has increased from just under 5% in 2005 to approximately 38%, as of mid-2017. The survey looked an EPA Energy Star, LEED, and green building ratings.
While not yet ranking in the Top 30 Green Office Markets in the U.S., green office space in Indianapolis is growing, with seven LEED-certified projects in place and ongoing development of green buildings throughout the metropolitan area.
The One River Crossing office building at 3815 River Crossing Parkway in Indianapolis is an outstanding example of green building in Indianapolis. Built in 1999, this 121,480-square- foot Class A office property has a LEED Silver certification and is one of the few currently LEED- certified buildings in the metropolitan area.
Indianapolis, IN's Top Office-Using Sectors
A diverse mixture of business and industry including high-technology, manufacturing, and education all contribute to the robust demand for Class A office space in the Indianapolis IN commercial real estate market.
- High Technology – The high-tech sector is one of the fastest growing in Indianapolis, with companies such as Formstack, Genesys, and Salesforce Marketing Cloud attracted to the qualified work force in the city.
- Manufacturing – Pharmaceutical companies such as Eli Lilly, hydrocarbon manufacturer Calumet Specialty Products, and transmission manufacturer Allison Transmission all call Indianapolis home.
- Education – Higher education institutions such as Ball State, Butler University, and Indiana University-Purdue along with the business they attract help to drive demand for Class A office product in Indianapolis.
- Corporate Offices – The demand for white collar office space in Indianapolis also comes from a diverse mix of companies such as CNO Financial Group, Simon Property Group, Republic Airways, Dow AgroSciences, and Roche Diagnostics.
- Total Population853,431
- Male Population(48.3 %) 411,970
- Female Population(51.7 %) 441,461
- Median Age34.10
- Average Household Income$63,698
- Median Household Income$44,709
- Median Income Under 25$26,355
- Median Income 25-44$46,177
- Median Income 45-64$52,788
- Median Income Over 65$37,111