By Denice Michel
Jones Lang LaSalle
Over the course of the last 12 months, $389 million in office product traded in the Indianapolis market. This is the second highest rolling 12-month average since 2007, however it is still significantly below the $725 million peak set in the third quarter of 2006 and below the rolling 12-month averages for other similarly sized Midwest markets including Cleveland, Kansas City, and Minneapolis.
In July, Jones Lang LaSalle brought to market Meridian Corporate Plaza, a 330,000 sf Class A, 92% occupied suburban office property (see photo above).
It is expected that capital flows into office product in Indianapolis will continue to increase over the next 12 to 18 months. Based on both anecdotal and empirical evidence, investors are turning to secondary markets due to higher yields and a lack of available product in trophy markets. Historically low vacancy rates in most submarkets, lack of speculative development, upward pressure on rental rates, favorable business climate to attract employers, and attractive debt terms will continue to attract investors to Indianapolis.