Audie Tarpley is a longtime building industry executive who leads the Dillon Construction Group, where he delivers solutions across multi-family, mixed-use, and commercial projects. Audie Tarpley maintains a strong focus on the trends that are defining Indianapolis’ real estate and economic landscape.
As explored in a March 2026 REBusiness Online article, Indianapolis industrial markets have shifted from “resilience to resurgence” as US companies seek strategic ways of expanding their domestic footprint. Indianapolis provides an affordable launching pad for large-scale industrial investment.
The foundations of this are a combination of a resilient and adaptable workforce, high capacity, manufacturing-ready infrastructure, and scalable Class A space. Class A buildings tend to be newer structures located close to transportation hubs, featuring quality materials and contemporary architectural design. On-site services such as security and maintenance are also often on offer.
According to REBusiness, two years of cautious expansion gave way to mega-deals starting in the fourth quarter of 2025. In that quarter alone, market absorption totaled 7.2 million square feet, which represented the best single‑quarter performance since mid-2021. It was more than half of the 13.1 million square feet of vacant property absorbed throughout 2025.
At the same time, leases and acquisitions centered on properties 500,000 square feet in size and larger shifted from a slowing trend to one of increased and heated deals. Major investors unpaused growth plans as the advantages conferred by Indianapolis’ long‑term operating value and workforce stability reemerged. Overall vacancy rates dropped to 8.1 percent by the close of 2025, the lowest rate since mid-2023.
Demand is also high for property development that has not yet been completed. Of the 3.7 million square feet of industrial property presently in development, some 90 percent has already been preleased.
An encouraging aspect of this growth is that it represents a diversifying economy, with tenants spanning sectors such as health care, life sciences, and advanced manufacturing. Pharmaceutical giant Eli Lilly is among the major corporations that provides a nexus of research and innovation, drawing in likeminded suppliers and startups.
Companies actively expanding include United Refrigeration, which is developing an ambitious owner-occupied facility, and the Swedish industrial heat transfer, separation, and fluid handling technology leader Alfa Laval, which is pursuing build-to-suit construction.
Dillon Construction Group’s commercial projects include a five-story Merchants Bank HQ2 and the recently completed Arrow McLaren Race Car Development Facility. With such high-profile development comes an emphasis on meeting next-generation tenant needs and operational requirements. New commercial construction often features flexible space layout, automation-ready facilities, and substantially increased power capacity. This makes for a simplified move-in and gives tenants ample opportunity to scale up and expand.
Investors increasingly view the Indianapolis market as the most reliable growth engine across the Midwest. This has created a manufacturing ecosystem that’s garnering attention on a global scale, with domestic and international buyers and leasers emerging. The region’s commercial capacity appears poised for sustained expansion.
