Marcus & Millichap Real Estate Investment Services had some good news for commercial brokers in Indianapolis: Office vacancies are on pace to fall in 2011.
This is especially good news considering how much the commercial office sector has slumped since the nation’s economic slowdown started.
According to the latest research from Marcus & Millichap, the office vacancy rate in Indianapolis will fall 20 basis points in 2011 to 19.6 percent. That’s an improvement over 2010 when office vacancy rates rose 110 basis points.
Asking rents are predicted to inch up 0.2 percent this year to $17.64 a square foot, while effective rents will rise 0.4 percent to $14.04 a square foot.
Marcus & Millichap even forecasts that builders will complete 18,000 square feet of office space this year. Of course, this new space will all come in one property, 9759 Crosspoint Blvd., a new office building that came online during the first quarter in Indianapolis’ North/Carmel submarket.