The Indianapolis office market recorded over 142,000 SF in net absorption, largely attributed to the 81,529 SF in the downtown (CBD) submarket. The vacancy rate rose for the 3rd consecutive quarter to 18.12%. Rents downtown rose to $19.66 on average, while remaining relatively stable at $17.91 in the suburbs.
Several transactions were recorded during the 2nd quarter, including the investment sale of the 2-building Penn Mark Portfolio (243,000 SF) as well as the purchase of 5502-5508 E. 16th St (98,554 SF). Although no buildings were delivered during this quarter, approximately 465,000 SF of new construction is expected to be completed before the end of 2017. However, nearly half of the projects under construction will be occupied by owner/users.