Office vacancy rate steady in second quarter

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A resilient service economy kept the Indianapolis-area office vacancy rate stable in the second quarter, according to Colliers Turley Martin Tucker.

The vacancy rate inched up to 17.2 percent from 17 percent in the first quarter. A year earlier, the rate stood at 16.8 percent.

The area absorbed a net 403,000 square feet of office space.

Downtown and northeastern Indianapolis vacancy rates held even, the north Indianapolis and Carmel area increased, and the Keystone area decreased.

Colliers principal and senior vice president Jon R. Owens said Indianapolis is holding up better than many other metro areas due to its broad base.

“We have a much more diverse economy to draw office tenants from,” Owens said.

Midtown, an area north of downtown along Meridian Street, saw its vacancy rate plunge to 5.1 percent from 12 percent. The area includes Gateway Plaza and Landmark center near Meridian and Interstate 65.

Driving down the rate was the move by the WFYI Teleplex to its new home at 16th and Meridian, Owen said.

The station’s new home is a multi-tenant facility, thus included in the occupancy statistics. It’s old location, 1401 N. Meridian St., was occupied only by WFYI, which meant it wasn’t included.

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