Chapter Profile: NAIOP Indiana

Substantial investments are driving opportunities across multiple CRE sectors in the Hoosier State.

Indiana’s official state motto is “Crossroads of America.” This geographic advantage, with proximity to major markets and a significant portion of the U.S. population, is a boon to commercial real estate development in the state, said Stephen Lindley, the immediate past president of NAIOP Indiana (Erin Shepherd began her term as chapter president on Jan. 1).  

“Indiana’s location will maintain its position long term as an industrial and logistics hub offering multimodal transportation options, excellent highway access, a logistics-capable international airport that hosts the second-largest FedEx hub in the U.S., busy commercial ports along Lake Michigan and the Ohio River, and mature and growing rail options,” said Lindley, vice president of development and Midwest market officer at Ambrose Property Group.

Lindley recently shared insights with Development on CRE trends in the state as well as NAIOP Indiana’s efforts in the areas of advocacy and education.

Development: What are the market conditions for member companies in your area?

Lindley: The Indianapolis commercial real estate market is experiencing a wide array of opportunities and challenges across sectors. Industrial has faced a steadily increasing vacancy rate that topped 10% for the overall market due to a flurry of new construction starts from 2021-2023. Supply challenges are isolated mainly to bulk product — more than 400,000 square feet — where demand has softened, with smaller, rear-load product experiencing more balanced supply-demand dynamics. Office faces continued challenges, particularly in commoditized buildings lacking amenities and a downtown Indianapolis core that hasn’t rebounded to pre-COVID levels. In contrast, Indy’s top suburban office submarkets that offer walkability and are highly amenitized have quickly absorbed newly constructed Class A office space and are seeing significant rent growth. The multifamily sector remains robust, particularly in central Indiana, with high occupancy rates, rent growth that outpaced the national average, and a growing construction pipeline for new multifamily projects, particularly in its high-demand northside suburbs.

Development: What challenges are you facing in either the business or regulatory climate in your area?

Lindley: Indiana, at the state level, remains a friendly environment for business and real estate development, with favorable tax rates, a variety of state and local incentives, and a desire to continue to build on recent economic growth. Challenges tend to be primarily localized. For instance, some communities that appeared eager for additional industrial development have abruptly shifted views on incentives such as tax abatement for speculative projects following the post-COVID boom and dramatic increase in supply. Some communities are expressing growing concern regarding utility management due in part to an uptick in high-tech manufacturing and data center interest. Some communities that have seen a substantial increase in development across various sectors are showing signs of increasing NIMBYism, while municipalities appear eager to see this kind of development continue for the time being. Housing supply and new residential development are on a good trajectory, but a gap remains between labor needs, labor availability and housing supply that will continue to present a challenging equation.

Development: What are the big opportunities in commercial real estate in Indiana currently?

Lindley: Indiana’s growth and attractive business climate provide solid fundamentals for CRE despite the challenges affecting the industry nationwide. Multifamily is poised for continued growth due to the state’s affordability and livability, significant suburban growth, the rising construction costs and limited inventory for single-family housing, and proximity to high-quality universities throughout central Indiana. Retail and industrial are also likely to see continued growth due to significant investments being made throughout Indiana — for example, IU Health’s $4 billion medical campus in downtown Indianapolis, Eli Lilly’s $13 billion investment in the LEAP Research and Innovation District in Lebanon, and Hendricks Commercial Properties’ $650 million redevelopment of Circle Centre Mall in Indianapolis. These and other substantial investments in both downtown Indianapolis and the broader metropolitan statistical area (MSA) present opportunities across multiple CRE sectors.

Within the Indianapolis MSA, two industrial submarkets appear particularly poised for near-term growth. The southwest submarket benefits from its access to Interstate 70 and its proximity to the Indianapolis International Airport and the FedEx hub. The northwest submarket has advantages due to its access to I-65 and its access to the LEAP District. The Indiana Economic Development Corporation controls more than 9,000 acres in this area, targeting advanced manufacturing, ag-bioscience, defense, life sciences, and other industries.

Development: What are some of your chapter’s legislative priorities?

Lindley: At the national level, preserving programs and policies that are beneficial to CRE, such as tax tools and rules, and fully funding programs incentivizing businesses that drive demand for CRE.

At the state level, maintaining Indiana’s business-friendly tax and regulatory environment, and avoiding unnecessary legislative actions on unrelated topics that push businesses away from Indiana or cause them to reconsider commitments to locate here.

Development: Education is an important part of NAIOP’s mission. Has your chapter organized any education sessions recently?

Lindley: In addition to social and networking events, NAIOP Indiana provides best-in-market educational programming. The quality of these events has been a key factor in our growth. The chapter will host at least one high-profile event in 2025 focusing on multifamily. Highlights from 2024 included:

• A panel of leading office and industrial brokers offered a comprehensive outlook on market trends and insights into what is driving leasing decisions for office and industrial tenants.
• NAIOP Indiana partners annually with a leading Indiana incentive consultant to brief members on current trends and changes in incentives and local community sentiment surrounding incentives, as well as to provide a political and legislative update on factors that could affect incentives.
• We offered Developing Leaders (DLs) an opportunity to meet and speak with subject matter experts in law, title insurance, construction, finance/tax, debt funding and limited partner funding. This event offered current DLs and DL prospects a chance to ask questions in a safe environment that doubled as an opportunity to grow professional networks.
• NAIOP Indiana proudly hosts its annual University Challenge where teams compete to deliver the best redevelopment plan for a board-selected case study property. The event helps future real estate professionals pursue their passion for CRE while offering a real-world testing environment and connects our members to the people who are likely to be the next generation of industry leaders.
• Our first “State of the Market” marquee event featured a macroeconomic overview from a leading national/international economist. In addition, Indiana-specific panels composed of leading brokers and developers specializing in multifamily, office and industrial assets offered their insights concerning Indiana and the broader Midwest markets in which they and their teams operate.

Development: What is your chapter doing to cultivate the next generation of leaders in the commercial real estate industry?

Lindley: NAIOP Indiana is committed to helping cultivate the next generation of CRE leaders and creating a place for them in the existing CRE community. The chapter provides continuous support to the Developing Leaders Program and has a dedicated committee to serve DL needs. The committee organizes networking opportunities and puts on one marquee event specific to DLs annually, connecting them with best-in-class CRE professionals. The chapter’s many educational events each year also bring DLs together with seasoned professionals.

In 2025, the chapter will execute its plan of strategic outreach to Indiana universities to better expose future real estate professionals to what NAIOP Indiana offers. The chapter is working to establish and subsidize a student membership program for up to 20 students based on a competitive process. The intent is to engage future leaders early and provide them with visibility to NAIOP and the benefits it provides both professionally and personally within the CRE industry.  

Jonathan Rollins is the managing editor of publications for NAIOP.

• Developing Leader
• Magazine Article
• Logistics
• Multifamily Property
• Industrial
• IN Indiana
• Education