Attractive Pricing Lures Out-of-State Office Investors to Indianapolis

INDIANAPOLIS,IN — Indianapolis’ economy and office market are proving to be more resilient than those in many other Midwestern metros, which have recorded significant payroll contractions and decreased employer interest during the past year, according to a second-quarter Office Research Report by Marcus & Millichap, the nation’s largest real estate investment services firm.

This strength is evidenced by steady office-using employment growth, a trend that is expected to persist in the short term.

“The market’s above-average cap rates, currently in the low- to mid-8 percent range, will continue to attract out-of-state buyers, as Indianapolis offers a yield premium during coastal and larger Midwestern metro areas,” says Josh Caruana, sales manager of the Indianapolis office of Marcus & Millichap.

Following are some of the most significant aspects of the Indianapolis Office Research Report:

· Employers are forecast to add nearly 2,800 new positions in 2008 for an expansion of 0.3 percent.
· Developers will complete 210,000 square feet of office space, increasing metro stock by 1 percent.
· Vacancy is projected to finish the year at 15.4 percent.
· Asking rents are predicted to rise 0.4 percent to $17.79 per square foot.
· Effective rents will gain 0.1 percent to $14.85 per square foot.

For a copy of the complete Indianapolis Office Research Report, as well as reports on other markets nationwide, visit our website at http://www.marcusmillichap.com/.

Press Contact: Stacey Corso,
Communications Department,
(925) 953-1716