The U.S. economy is displaying mixed signals midway through 22Q2. Inflation reached a 41-year high of 9.1% in June, reducing consumer purchasing power while driving negative sentiment. Against this backdrop, the Federal Reserve is on track for back-to-back rate hikes of 75 bps to temper demand. The job market is very tight, but the anticipated economic slowdown is triggering fears of a recession. None of these factors are muting the strong performance of the Indianapolis industrial market. New leasing activity surged in 22Q2 and is expected to set records for a second consecutive year. Developers are acquiring land and building speculative projects at a historic pace to keep up with demand. Momentum in the fastest growing Midwest market shows no signs of slowing down.
- New leasing activity totaled more than 11 MSF in 22Q2.
- Indianapolis makes up 4.9% of product under construction nationally as developers build to match local demand.
- Vacancy climbed 52 bps to 4.2% in 22Q2 after falling to a record low rate of 3.7% in 22Q1.
- Overall triple net asking rental rates grew 11.6%