5 Key Performance Indicators Show Strong Growth
Leasing, construction and investment activity continues to boost the Indianapolis office market. Our third quarter Office First Look report shows strong numbers across the board. With low vacancy rates and increasing asking rates, Indianapolis continues to attract tenants and investors. Given just one more quarter this year, we anticipate 2016 to go on record as one of the best years post-recession. Check out some of the key performance indicators that are leading the way.
One of the key drivers for such robust leasing activity is the technology sector. This is no surprise given Indianapolis ranked as a top-10 market nationally in terms of tech leasing according to JLL’s most recent tech report.
Four office construction projects already completed this year total more than 300,000 square feet. This is more than the last five years combined. Demand for this space is high as the buildings were delivered nearly three-quarters preleased.
Investment activity is occurring at an elevated rate in Indianapolis. To date, 17 investment transactions have already closed in 2016 with another two currently under contract. Even more notable is that nearly half of Indianapolis’ skyline properties changed hands. Not to be outdone by the CBD, this quarter’s activity branched out into the northern suburbs as several office parks traded hands.
Gross asking rates in metro Indianapolis currently stand at $19.68 per square foot, an increase of over four percent since this same time last year and the highest post-recession. As vacancy remains low and absorption maintains, we expect rates to continue an upward trajectory.
Over half of the top 10 sales transactions this year occurred in the third quarter. In fact, the three largest sales to date all closed in August for a combined total of $416 million. This is greater than all remaining transactions this year combined.
Download the Office First Look report for further details and full statistics.