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More than 25% of downtown offices sit empty as north side booms

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More than 25% of downtown offices sit empty as north side booms


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Companies are increasingly looking north for space, a sign that employers still want in-person offices just not in the downtown high-rises that once drew business. The trend means downtown office space remains in high-supply and low-demand — unless, that is, the office space comes flush with amenities, the market shows.

The overall Indianapolis office market sat at 21.2% vacant at the end of 2025, a slight dip from earlier in the year but an improvement over the year before, according to research published in January by Colliers.

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The downtown office market vacancy rate, however, did not budge, remaining at 26%, signaling the challenges landlords face in drawing companies to move to or resign leases in the city’s urban core. Leasing on the north side of the city and Hamilton County largely buoyed the overall health of the Indianapolis metro office market, said Nick Svarczkopf, CBRE senior vice president of office and medical properties.

The reason is relatively simple, tenant representatives say: Companies downsized as employees work more hybrid hours and those who still want office space lean toward shared, untraditional layouts. Most downtown office space, especially in the largest office buildings, tends to be older, more old-fashioned workspaces dotted with cubicles and individual office walls.

The rare exception is Bottleworks, a development off the main strip of Mass Ave. The Hendricks Commercial Properties space is completely filled, with a fully pre-leased building in the pipeline.

In June, law firm Ice Miller signed an 85,000-square-foot lease in the Bottleworks Phase III under development off Mass Ave set to open in 2028. The contract became the largest downtown lease since 2019 and made the firm the largest tenant at the state-of-the-art Bottleworks campus.

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Bottleworks offers many of the features workplace real estate experts say employees in 2026 value most: fitness centers, walkable areas and close dining spots to grab lunch. Employers have taken note, paying premium rent to move into office space that has access to these more experiential options, said Rich Forslund, executive vice president at Colliers’ Indianapolis office.

“Downtown has some but the suburbs have quite a bit,” Forslund said. “So people are moving to those spots in order to try to draw folks back to the office.”

Companies put employee experience first

A stroll through the Indiana Members Credit Union’s new headquarters at 835 N. College Ave., part of Bottleworks, reveals all of those aforementioned amenities — plus an employee-only outdoor patio, a custom soda and sparkling water machine and a state-of-the-art golf simulator, saving the company time-consuming and costly bonding outings to Top Golf.

For IMCU employees, the new office represents a drastic change from their old headquarters on the south side that cobbled together several strip mall-like buildings and a surface parking lot into a corporate campus. Roughly 120 of the company’s 467 employees work at the Bottleworks office, where they are required to come at least four days a week. The remaining employees work at customer branches around the city.

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President and CEO John Newett said the credit union ran out of space at its south-side location, prompting the need for the company’s move at the start of the new year. To ensure that doesn’t happen again soon, IMCU built in space for additional workers in the new office and hopes the spot just off Mass. Ave. will attract younger employees looking for an up-and-coming place to work as well as draw new employees from other suburbs to the north and west.

Part of that strategy included finding as many “wow factors” in the new space as possible, Newett said.

“It’s a little more fun than the traditional office,” Newett said.

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Indy lags behind other major downtowns

Across the country, office vacancy is hovering around 20.5% as the U.S. market shows signs of stabilizing after years of growing vacancies following the pandemic. Yet statistics from cities across the nation show that Indianapolis is relatively unique with suburban areas outpacing dense downtown neighborhoods.

While Indianapolis’ downtown real estate market still struggles, other cities are leaning on downtown office space for new leases. Nationwide, downtown districts accounted for 42% of leasing activity in the final three months of the year, despite comprising just 35% of overall supply, CBRE reported. Leasing rose 8% year-over-year in 2025, while suburban activity fell 7% over the same period.

In Indianapolis, those numbers are much lower: Just 17% of leases during the same timeframe were located downtown.

The stats are not too worrisome to experts, as Indianapolis typically lags behind the bigger coastal markets, Forslund said. But Indianapolis will need to decide where it wants to go in the future, whether that means upgrading older buildings or converting more empty space to apartments and hotels.

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“I refer to it as we are still in our teenage years, trying to figure out what we want to be,” Forslund said.

Indy employers will have to get more creative, or less picky, in the near future as supply dries up on the booming north side market. For instance, Midtown Carmel sits virtually full. And just one commercial office building for rent is under construction in Hamilton County, the Union at Fishers District, a mixed-use development with luxury office space set to open in early 2027 next to IKEA.

Elsewhere around the area, companies are constructing build-to-own properties but those won’t be available to other companies looking for open space and workstations for their employees. Those projects include Republic Airways’ corporate headquarters expansion in Carmel, a Merchants Bank project in Carmel and Elanco’s new headquarters, which opened in October on the west side of Indianapolis.

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As building new office space has become more and more expensive, more landlords are choosing to reinvest in and upgrade their existing offices in a bid to make them more attractive, Svarczkopf said.

“Based on the way the market is right now, they have to upgrade in order to compete,” Svarczkopf said. “The ones that have been successful have gone through the process of reinvesting in the property.”

Even with upgrades, the competition will be hot. At Indiana Members Credit Union, employees have responded well to the new office, executives said. Many amenities, like indoor parking that is patrolled, are not available elsewhere downtown.

“It just answered a lot of the questions we had and the amenities we wanted to provide for our team,” Newett said.

Alysa Guffey writes business and development stories for IndyStar. Have a story tip? Contact her at amguffey@usatodayco.com.

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Indianapolis, IN

Indiana Workforce Pell Grant options limited so far

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Indiana Workforce Pell Grant options limited so far


INDIANAPOLIS (WISH) — Education leaders on Thursday said waiting for rulemaking limited the number of programs approved for a new grant program, but they expect more approvals soon.

Created as part of the One Big Beautiful Bill Act that President Donald Trump signed last year, the Workforce Pell Grant program allows students to use Pell Grants for short-term, direct-to-workforce training programs. The program began on July 1. Ivy Tech Community College of Indiana and Vincennes University, which are Indiana’s two two-year vocational and technical institutions, are the only institutions in the state authorized for the program so far, though state officials have said they’ll consider expanding it to other institutions depending on the results of the first year.

So far, state education officials have approved three programs for Workforce Pell Grants: certified clinical medical assistant programs at Ivy Tech and Vincennes, plus an electrical maintenance technician bootcamp Vincennes offers. Final approval must come from the federal government, which has not yet green-lit any of those programs.

Molly Dodge, Ivy Tech’s senior vice president for workforce and careers, said Ivy Tech leaders needed to make sure they thoroughly understood the requirements they would face. To be eligible, a program must have at least a 70% completion rate and a 70% job placement rate. It also must lead directly to a job in a high-growth, high-demand job sector. Dodge said the rules were finalized this spring. After that, she said Ivy Tech leaders began going through each of their courses to see which ones would be eligible.

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“Workforce Pell has a significant requirement related to job placement and wages, and so we need to backward design from an employer, in many cases, to make sure that we’re successful in launching these Workforce Pell programs,” she said.

Tony Hahn, Vincennes University’s vice president for government and legal affairs, said July 1 was the earliest under federal statute the program could begin. In practice, he said the rollout will take some time because programs must be offered for one year in exactly the same format before they become eligible for the Workforce Pell Grant.

“These are often programs that we have offered through Next Level Jobs programs and other Department of Workforce Development funding, but didn’t have the exact same requirements on number of classroom hours or number of total weeks offered,” he said. “And so, we made some modifications and we’ll be able to expand this list.”

Both Dodge and Hahn said leaders at their respective institutions are reviewing their course catalogs for other potentially eligible programs. They said they expect to add approved programs in the coming months.

Dodge said Workforce Pell-eligible programs are often designed with the expectation that you will go to work with a partner employer upon completion of the program, but that doesn’t mean education ends there. She said Workforce Pell Grant programs are stackable and can be pursued as part of a longer-term higher education strategy. Students can qualify for both traditional Pell Grants and Workforce Pell Grants, though not at the same time.

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Hahn said prospective students won’t be able to apply for Workforce Pell Grants until this fall or next spring. If you’re interested, he said you should fill out a federal student financial aid form. He said Vincennes University leaders expect to add information about eligible programs to their application website once approved.



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Indianapolis, IN

Man dies after car crashes into pole on near NW side

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Man dies after car crashes into pole on near NW side


INDIANAPOLIS – A man died in a crash on the near northwest side of Indianapolis.

According to the Indianapolis Metropolitan Police Department, officers were dispatched to 505 W. 16th St. around 4:15 a.m. Thursday.

A person died in a crash on West 16th Street on July 9, 2026 (WXIN/WTTV)

There, officers discovered a vehicle had crashed into a utility pole. The driver was taken to a local hospital where he died from his injuries.

The incident remains under investigation.

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Indianapolis, IN

Adam Vinatieri will celebrate on the field in Indianapolis again as Colts’ Ring of Honor member

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Adam Vinatieri will celebrate on the field in Indianapolis again as Colts’ Ring of Honor member


INDIANAPOLIS — Adam Vinatieri, the NFL’s career scoring leader who was also widely considered the best clutch kicker in league history, will have one more celebration on the Indianapolis Colts’ home turf this season when he’s inducted into the team’s Ring of Honor.

Team officials announced Wednesday that Vinatieri would be honored during the Colts’ game against the Tennessee Titans on Oct. 18, a little more than two months after his induction into the Pro Football Hall of Fame in Canton, Ohio.

Vinatieri will become the Colts’ 21st Ring of Honor honoree five years after he officially retired.

He’ll join a group that includes former teammates and fellow Hall of Famers Peyton Manning, Marvin Harrison and Dwight Freeney, as well as Robert Mathis, Jeff Saturday and Reggie Wayne. Tony Dungy, the Hall of Fame coach for whom Vinatieri played; Hall of Fame executive Bill Polian, who signed Vinatieri as a free agent before the 2006 season; and late team owner Jim Irsay are also in the Colts’ ring.

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The four-time Super Bowl champion shocked many when he left New England as the franchise’s career scoring leader after 10 seasons and wound up with longtime rival Indianapolis. But Vinatieri was far from finished and went on to break the Colts’ career scoring mark, too.

Though Vinatieri’s stats tell one tale: He finished his career with 2,673 points and as the league’s all-time leader in field goals made (599), field goal attempts (715), consecutive field goals made (44) and 100-plus point seasons (21). But it was his penchant for making kicks in the toughest conditions and most crucial moments that stuck with him.

His 45-yard field goal into swirling winds amid snowy conditions for New England in a January 2002 AFC divisional round game tied it and sent the Patriots into overtime against the then-Oakland Raiders. He then kicked a 23-yarder to start New England’s trek to coach Bill Belichick’s first Super Bowl.

Two weeks later, Vinatieri did it again by making a 43-yarder in the waning seconds to give the Patriots their first Super Bowl title with a 20-17 victory over the then-St. Louis Rams in much more ideal conditions.

Vinatieri 41-yarder with 4 seconds left broke a 29-29 tie with the Carolina Panthers for New England’s second Super Bowl title two years later.

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Vinatieri continued to excel in Indy, where he first played inside a dome stadium and later a retractable roof stadium.

In January 2007, the South Dakota State alum made five field goals in a divisional round game that featured no touchdowns at Baltimore. The 15-6 victory set up an AFC title game rematch between the Colts and Patriots, this time in Indy with Vinatieri on the opposite sideline from Tom Brady and his ex-teammates. Vinatieri’s playoff run continued as the Colts reached their first Super Bowl since the franchise moved to Indianapolis.

Vinatieri made three more field goals and captured yet another ring while finishing that postseason with 49 points and 14 field goals, both one-season playoff records, while becoming the first player to make three or more field goals in four consecutive postseason games.

Vinatieri ranks second all-time in NFL victories (242), regular-season wins (221) and postseason wins (21) and is one of five players who appeared in a game at age 46. He’s the only player in league history to make 250 or more field goals and scored 1,000 points for two teams.

The three-time All-Pro also was a three-time Pro Bowl selection and a member of the NFL’s 100th Anniversary All-Time Team.

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