In total the Indianapolis multi-tenant office market equals 31.4 million square feet. The vacancy rate is slightly less drastic in the central business district, which contains 11.6 million square feet. There the numbers rose from 14.4% in Q1 to 15.1% in Q2.
Absorption for the period totaled a negative 296,000 square feet. Negative absorption was found in both the CBD and the suburban market.
During the second quarter there was no new development brought online, but by year end the One Concourse, a four-story class A office, will be complete. That property will add 110,000 square feet to the market.
Additionally, the report states that while more than 20 buildings are in the planning stages it remains to be seen if they will rise from the ground given the difficult economic times and the high vacancy rate. "With current total market vacancy rates approaching 20% we can expect to see little movement on new speculative office development in 2009 or 2010," says Jason Tolliver, manager research services for CTMT.
As seen nationwide rental rates are beginning to drop and sublease space in both the CBD and suburbs continues to increase.
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