What is the average Class A rent in Indianapolis?

Around 26 USD/sqft/yr ($26 USD) across the broader Class A index. Trophy submarkets like Mile Square (Downtown) command 20–40% above that.

How many months of rent-free are normal in Indianapolis?

12 months on a 10-year deal is the standard benchmark. Lease-up product or tenants with strong covenant strength can push higher.

Are rents rising or falling in Indianapolis?

The Indianapolis Class A market is currently flat. Vacancy is 19.2%, which sets the negotiating context.

Headline Class A rent in Indianapolis is around 26 USD/sqft/yr ($26 USD), with 12 months of typical rent-free on a 10-year term.

Headline Class A rent: 26 USD/sqft/yr ($26 USD).
Trophy submarket rents (Mile Square (Downtown)) push to roughly $32/sqft/yr.
Typical concessions on a 10-year deal: 12 months free rent.
Vacancy stands at 19.2% — market trend is flat.
Use effective rent (face minus PV of concessions), not headline, to compare deals.

Indianapolis Class A office rents and incentives

Headline Class A rent in Indianapolis is around 26 USD/sqft/yr ($26 USD), with 12 months of typical rent-free on a 10-year term.

TL;DR

Headline Class A rent: 26 USD/sqft/yr ($26 USD).
Trophy submarket rents (Mile Square (Downtown)) push to roughly $32/sqft/yr.
Typical concessions on a 10-year deal: 12 months free rent.
Vacancy stands at 19.2% — market trend is flat.
Use effective rent (face minus PV of concessions), not headline, to compare deals.

Headline rent vs. effective rent

Asking rents in Indianapolis are quoted in USD per sqft per year. Across the broad Class A index the figure is 26, but the trophy tier in Mile Square (Downtown) reaches roughly $32/sqft/yr. Always discount headline rent by the present value of free rent and fit-out-capex">tenant improvement allowance to land on effective rent — the only number that compares cleanly across deals.

Rent-free and TI

Standard Indianapolis concessions on a 10-year Class A lease run to 12 months of base-rent abatement. Trophy lease-ups can push rent-free 25–40% above that benchmark. Local cost-of-occupancy is also shaped by tax — 21% federal plus Indiana's 4.9% corporate income tax. Marion County local income tax. Combined effective rate near 26%.

Where rents land by submarket

Mile Square (Downtown) sits at the top end (~$32/sqft/yr). Mass Ave / Bottleworks clears around $30/sqft/yr as the prime tier. Keystone Crossing represents the value end at ~$26/sqft/yr. The full submarket map is on the Indianapolis city page.

Key facts

city	Indianapolis
country	United States
region	Americas
classARentLocal	26 USD/sqft/yr
classARentUsd	$26/sqft/yr
vacancy	19.2%
typicalLeaseYears	10
typicalRentFreeMonths	12
submarkets	5
primeYieldPct	7.4%
trophyRent	$32/sqft/yr
primeRent	$30/sqft/yr

Frequently asked questions

What is the average Class A rent in Indianapolis?: Around 26 USD/sqft/yr ($26 USD) across the broader Class A index. Trophy submarkets like Mile Square (Downtown) command 20–40% above that.
How many months of rent-free are normal in Indianapolis?: 12 months on a 10-year deal is the standard benchmark. Lease-up product or tenants with strong covenant strength can push higher.
Are rents rising or falling in Indianapolis?: The Indianapolis Class A market is currently flat. Vacancy is 19.2%, which sets the negotiating context.

Editorial provenance

Reviewed by Class A Atlas Editorial Desk — House byline · global editorial team. Last updated 2026-04-15. See our methodology and editorial standards.

Primary sources for this page

CBRE Marketview reports — CBRE
JLL Office Insight — JLL
Cushman & Wakefield Marketbeat — Cushman & Wakefield
Savills World Research — Savills
Colliers Global Office Outlook — Colliers

Full sources index · Submit a correction