---
title: "Indianapolis Class A office rents and incentives"
description: "Class A asking rents, concessions, free rent, and tenant improvement allowances in Indianapolis."
canonical: https://classa.info/cities/indianapolis/rents-and-incentives
pageType: city-topic
lastUpdated: 2026-04-15T00:00:00.000Z
license: "CC BY 4.0 with attribution to Class A Atlas (https://classa.info)."
---

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

## TL;DR

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

## TL;DR

- Headline Class A rent: $26/sqft/yr.
- 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](/glossary/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](/topics/trophy-asset-selection) in Mile Square (Downtown) reaches roughly $32/sqft/yr. Always discount [headline rent](/glossary/headline-rent) by the present value of free rent and [fit-out](/topics/us-tia-strategy)-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/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/sqft/yr 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**](/about/authors/class-a-atlas-editorial-desk) — House byline · global editorial team. Last updated 2026-04-15. See our [methodology](/about/methodology) and [editorial standards](/about/editorial-standards).

### Primary sources for this page

- [CBRE Marketview reports](https://www.cbre.com/insights) — CBRE
- [JLL Office Insight](https://www.jll.com/en/trends-and-insights) — JLL
- [Cushman & Wakefield Marketbeat](https://www.cushmanwakefield.com/en/insights) — Cushman & Wakefield
- [Savills World Research](https://www.savills.com/research_articles/) — Savills
- [Colliers Global Office Outlook](https://www.colliers.com/en/research) — Colliers

[Full sources index](/about/sources) · [Submit a correction](/about/corrections)

## Related topics

- [**Class A Lease Negotiation**](/topics/class-a-lease-negotiation) — How to negotiate a Class A office lease — the playbook from LOI to signed deal.
- [**US TIA Strategy**](/topics/us-tia-strategy) — How to negotiate, draw down, and account for US tenant improvement allowances (TIA).

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Citation: Source: Class A Atlas (https://classa.info/cities/indianapolis/rents-and-incentives), updated 2026-04-15T00:00:00.000Z.