Office vacancy inches up

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Downtown Indianapolis had a 15.5-percent vacancy rate for multi-tenant office buildings at the end of the third quarter, down 0.2 percent from the prior quarter, according to Colliers Turley Martin Tucker. Government and medical buildings are excluded from the data.

The vacancy rate for suburban office space was 18 percent for the quarter, up 0.5 percent from the quarter before. The West suburban market had the highest vacancy rate, 29.4 percent, with the East office market having the lowest, 9.5 percent. The largest decrease in vacancy in the quarter occurred in the North/Carmel market, with a drop of 2.8 percent.

Citywide, the vacancy rate for the quarter was up 0.2 percent, to 17 percent.

Vacancy in the city’s industrial market rose to 7 percent, from 6.5 percent the previous quarter. Nearly 800,000 square feet of speculative space came on the market in the quarter, driving up vacancy.

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