Calculate cap rates and net operating income for commercial properties in Indiana. Compare your results against Indiana's secondary market benchmarks sourced from CBRE H2 2025.
Indianapolis has emerged as a strong secondary market with diversified healthcare, logistics, and life sciences industries. Indiana has significant industrial activity driven by automotive manufacturing, pharmaceutical distribution, and the Ports of Indiana on Lake Michigan. Low cost of living and business-friendly tax environment attract corporate investment.
| Property Type | Typical Low % | Typical High % |
|---|---|---|
| Multifamily | 5.5% | 7.5% |
| Industrial | 5.5% | 7.5% |
| Retail | 6.0% | 8.0% |
| Office | 7.0% | 9.5% |
Benchmarks sourced from CBRE H2 2025 Cap Rate Survey, JP Morgan, Matthews, and Cushman & Wakefield market data. Ranges represent typical stabilized assets — actual rates vary by asset quality, location, and market conditions.
Indiana cap rates range from 5.5–7.5% for multifamily and industrial, 6.0–8.0% for retail, and 7.0–9.5% for office. Indianapolis has the most competitive rates in the state, with a growing healthcare and life sciences cluster supporting multifamily and medical office investment.
Indiana's CRE is anchored by pharmaceutical manufacturing (Eli Lilly HQ in Indianapolis), automotive parts manufacturing (Honda, Subaru plants), healthcare systems, and logistics. The state's central US location and highway access make it attractive for distribution and warehousing, with industrial cap rates among the more competitive in the Midwest.
Indianapolis offers a favorable combination of below-average cap rates for a secondary market (reflecting its institutional quality), strong healthcare and life sciences fundamentals, a growing tech sector, and lower property taxes than Illinois or Ohio. The city's consistent ranking as a top business destination supports stable NOI growth.
This tool is for informational and educational reference only and does not constitute real estate investment advice. Cap rate benchmarks are estimates based on published industry surveys and may not reflect current conditions in your specific market, submarket, or asset class. Actual cap rates vary significantly based on property condition, location, tenant quality, lease terms, and local market dynamics. Always consult a licensed commercial real estate broker, appraiser, or investment advisor before making real estate investment decisions.