Commercial Real Estate Market in Indianapolis, IN
Updated monthly: sale, lease, property records, location trend, and more… · Last update: August 31
1,998 active listings and 19,782 off-market properties in Indianapolis, IN. Commercial property asks $52/SF to buy and $20.61/SF/Yr to lease. Office vacancy runs 21.4%, the loosest of the segments tracked here.
Market Trends
Indianapolis, IN spans 414.2 square miles in Marion County, Indiana. Figures below refresh monthly; last updated 31 August 2026.
Office
Office vacancy in Indianapolis, IN runs 21.4% in 2025, up from 17.4% in 2019. Down from a 2024 peak of 22.8%.
Vacancy Rate %
Retail
Retail vacancy in Indianapolis, IN runs 4.8% in 2025, down from 6.6% in 2019. Down from a 2020 peak of 7.4%.
Vacancy Rate %
Industrial
Industrial vacancy in Indianapolis, IN runs 7.6% in 2025, up from 4.3% in 2019. Down from a 2024 peak of 10.5%.
Vacancy Rate %
Multifamily
Multifamily vacancy in Indianapolis, IN runs 8% across the Midwest region in 2025, up from 6.5% in 2022.
Vacancy Rate % in Midwest region
Zoning & Land Use
Land Use Mix share of zoned land by category
- Residential 41.9%
- Industrial 12.8%
- Civic 12.1%
- Commercial 10.5%
- Planned_development 7.3%
- Open space 5.9%
- Special 2.8%
- Mixed use 1.6%
Largest Zones share of zoned land by district
Dwelling Agriculture District
Dwelling District Five
Dwelling District Three
Dwelling District Two
Planned Unit Development District
Indianapolis, IN zones 235,767 acres across 74 districts. Commercial zoning covers 10.5% of zoned land, residential 41.9%, open space 5.9% and industrial 12.8%. The largest single district is Dwelling Agriculture District at 14.5%. For commercial buyers the practical constraint is that only 23.3% of land carries a commercial or industrial designation.
Dwelling District Five (D5)
Dwelling District Five (D-5) The D-5 district is intended for medium and large- lot housing formats, primarily for detached houses, but may incorporate small- scale multi- unit building types in strategic locations. This district can be used for new, walkable suburban neighborhoods or for infill situation in established urban areas, including both low densit…
Market overview
Demographics & Economy
Indianapolis, IN has 986,025 residents in 442,552 households. Density runs 2,381 people per square mile. Median household income here is $67,161 and median gross rent $1,158 a month.
986,025
Population
442,552
Households
2.2
Avg Household Size
35
Median Age
34%
College-Educated
87%
High-School Grad
414.2 sq mi
ZIP Area
2,381
Density / Sq Mi
$67,161
Median Household Income
$42,346
Median Earnings
$1,158
Median Rent
$210,919
Median Home Value
Tools
Nearby Markets
| Market | Average Sale Price, $/SF | Average Lease Price, $/SF/Yr |
|---|---|---|
| Rocky Ripple | — | — |
| Crows Nest | — | — |
| Wynnedale | — | — |
| North Crows Nest | — | — |
Commercial property in Indianapolis, IN asks $52/SF.
Frequently Asked Questions
What is the average price per square foot for commercial property in Indianapolis?
Commercial property in Indianapolis, IN asks an average of $52 per square foot.
How much does it cost to lease commercial space in Indianapolis?
Asking lease rates in Indianapolis, IN average $20.61 per square foot per year.
What is the office vacancy rate in Indianapolis?
Office vacancy in Indianapolis, IN is 21.4% as of 2025, up from 17.4% in 2019. Retail vacancy is 4.8%, below Office vacancy.
Which property type has the lowest vacancy in Indianapolis?
Retail has the lowest vacancy in Indianapolis, IN at 4.8%, inside a 4.6–7.4% band since 2019. For comparison: office 21.4%, industrial 7.6% and multifamily 8% (Midwest).
What zoning applies to commercial property in Indianapolis?
Indianapolis, IN zones 235,767 acres across 74 districts, of which 10.5% is commercial and 12.8% industrial. The largest single district is Dwelling Agriculture District at 14.5% of zoned land. Residential zoning covers 41.9% and open space 5.9%.
Where does Realmo's Indianapolis market data come from?
Realmo compiles Indianapolis, IN figures from 1,166 active sale listings, 832 active lease listings, 19,782 tracked off-market properties, the current Indianapolis zoning release. Sale and lease figures refresh monthly; vacancy annually. Last updated 31 August 2026.
Methodology & data sources
- Asking prices and averages
- Computed from 1,166 active for-sale and 832 active for-lease listings in Indianapolis, IN. These are ASKING figures from live listings, not closed-transaction prices, and a segment carried by a handful of listings reads as indicative rather than an average.
- Vacancy rates
- Published per-sector market series, taken at the metro level where one exists and otherwise at the Census-region level — a chart reading "in <region> region" is a regional number, not this city's.
- Zoning and land use
- The current municipal zoning release: 235,767 zoned acres across 74 districts. Shares are of zoned land, so parcels the release leaves unclassified are excluded from the mix.
- Refresh
- The monthly aggregates close at the end of the previous month, so 31 August 2026 — not today — is the honest last update.
- Known limitations
- multifamily vacancy is reported at Midwest region level.
- Coverage
- Metrics below the 10-observation threshold fall back one geographic level. The geography used is named on each figure.
Compiled by the Realmo Data team · reviewed 31 August 2026 · report a data issue
