INDIANAPOLIS—Like most of the US, the metro area of Indianapolis has continued an economic expansion and is finally nearing its potential, according to a series of new reports by Cassidy Turley. Indianapolis retailers especially have started to see solid improvements that track with overall US trends. The Consumer Confidence Index, the researchers point out, which often predicts increased consumer spending, rose in June to its highest level since January 2008, and “as consumption and demand intensifies over the latter half of the year, leasing activity will likely accelerate and strengthen an already much-improved Central Indiana retail market.”

The Indianapolis retail market saw 161,689-square-feet of net absorption in the second quarter, and greater deal velocity helped push overall vacancy down to 6.9%, below the historical average of 7.3%, its lowest level since before the recession, Cassidy Turley found. Furthermore, this recovery seems to have a broad geographic base. “Examination of trade area metrics confirms that eleven of the fifteen prime trade areas have seen occupancy increase, and all trade areas have witnessed improved fundamentals so far this year.”

And even though malls and power centers have the lowest vacancy rates, it was the neighborhood and community centers that posted the strongest year-over-year improvements in vacancy.