In 2026, the smartest capital in commercial real estate continues to flow into Indiana—but not just anywhere. Here are the key CRE hotspots and strategies where investors are placing their bets, and why Annie Scott Realty Group is watching them closely.
1. Industrial & Logistics Near Indy’s Core
- The Indianapolis industrial market is recovering strongly: net absorption spiked in 2025, and vacancy is tightening. Colliers+2Crexi+2
- E-commerce demand and regional distribution are driving demand for well-located warehouses, especially those with highway access. Indy Economic Development+1
- Smart investors are favoring pre-leased or built-to-suit bulk industrial developments rather than speculative builds. Crexi+1
- As supply stabilizes, high-quality logistics plays will likely see durable growth—especially along I-465 and close to the FedEx hub. NAIOP+1
Take-away: Industrial real estate around Indy remains a long-term anchor for CRE money.
2. Suburban Class A Office (Especially North)
- Downtown office vacancy remains elevated (over 20 %), but Class A suburban offices in places like Hamilton County, Fishers, and Carmel are seeing more demand. Colliers+1
- Companies are looking for high-amenity, modern flexible workspace outside the city core, aligning with the hybrid work trend. anniescottrealty.com
- Some older office buildings are being repurposed or converted into residential or mixed-use, creating opportunities for value-add investors. Indy Economic Development+1
- Forecasts indicate moderate office construction through 2026, helping prevent oversupply while supporting quality assets. Carmen Real Estate
Take-away: Suburban Class A offices offer a resilient play with fewer downside risks than downtown.
3. Multifamily Growth, Especially in Suburbs
- Multifamily demand remains strong: in Q1 2025, rent growth in central Indiana outpaced the U.S. average. Colliers
- Much of new development is concentrated in Hamilton and Johnson counties, where suburban growth is strongest. Colliers
- As new deliveries ease into mid-2026, supply-demand fundamentals are expected to rebalance, making now a sweet spot for value-add or core-plus multifamily plays. Colliers
Take-away: Suburban multifamily continues to be a stable and growing opportunity for long-term investors.
4. Retail + Adaptive Reuse
- Retail is rebounding in Southeast and key submarkets, driven by experiential retail and last-mile conversion. caraconde.com
- Investors are converting underused retail into micro-distribution hubs (fulfillment centers) or mixed-use development. caraconde.com+1
- Tax incentives and redevelopment credits are making adaptive reuse projects more financially viable. caraconde.com+1
Take-away: Rather than pure retail plays, smart money is backing flexible, mixed-use, or logistics-oriented retail conversions.
5. Opportunity Around Hospitality & Convention Growt
- The Indiana Convention Center is expanding, and in summer 2026, a new Signia by Hilton hotel is expected to open. Axios
- This expansion could drive investor interest in hotel developments, hospitality-backed mixed-use, and short-term lodging in the downtown core.
- As Indiana grows as a conference destination, demand for lodging and adjacent retail or office will likely strengthen.
Take-away: The convention center build-out could unlock strategic CRE plays in hospitality and mixed-use.
6. Geographic Sweet Spots to Watch
- North Suburbs (Carmel, Fishers, Hamilton County): Office, mixed-use, and multifamily.
- Industrial Corridors around I-465: Big logistics nodes, last-mile distribution.
- Downtown with a Twist: Adaptive reuse of office + retail into residential or hospitality.
- Transit- and Convention-Adjacent: Hotel investments and mixed-use near the new convention infrastructure.
Wisdom for CRE Investors in 2026
- Focus on fundamentals, not hype. Target property types with real demand drivers, not speculation.
- Be ready to reposition. Converting underused assets (e.g., old offices) is where value will be unlocked.
- Align with local economics. The success of logistics, suburban living, and convention growth will be tied to Indiana’s broader economic strength.
- Use relationships—and local insight. CRE success in Indiana comes from knowing the submarkets, incentives, and long-term economic bets.
Conclusion:
In 2026, smart investors will continue to bet on Indiana’s CRE market but will be selective. The most compelling plays are not in overbuilt, speculative spaces — they lie in well-located industrial, suburban Class A office, multifamily, and adaptive reuse. For those who understand the local dynamics, Annie Scott Realty Group is well positioned to help navigate these hotspots where capital and opportunity converge.
