Louisville's Commercial Real Estate Market

Nationwide, buyers and commercial tenants look to #Louisville as a thriving, viable market to invest in commercial real estate. Louisville’s quick-climbing population, economic resilience, and status as a corporate headquarters for multiple companies position the city as an attractive market for #CRE professionals.?

To date, Crexi’s commercial real estate tools have helped brokers to close more than $330 billion in asset value and market more than $2 trillion in investments.

Crexi proudly serves Louisville, Jeffersontown, Mt Washington, Clarksville, Shiveley, and the entirety of the Bourbon City area as its fastest-growing digital commercial real estate marketplace.

The State of Commercial Real Estate in Louisville

The Louisville metro area spans over 3,200 square miles in north central Kentucky, bordering the Ohio River and Jefferson County in Indiana. Nicknamed “Bourbon City” and the “Gateway to the South”, Louisville is the largest city in Kentucky with a diverse robust economy of both public and private industry including education and healthcare, manufacturing, transportation and shipping, and high technology.

There are many reasons to consider investing in commercial real estate in Louisville. The city’s economy is strong and growing, with several large companies relocating to Louisville in recent years. The city’s population is also steadily increasing, which creates more demand for office space and other commercial properties.?

Commercial real estate investors will find that Louisville offers a wide range of opportunities, from office buildings to retail centers. With its strong economy and population growth, Louisville is an excellent place to consider investing in commercial real estate.

Louisville Regional Breakdown

Jefferson County (where Louisville is located) was among the fastest-growing areas in the state. Population growth was?5.7% over the past 10 years, compared to?3.8% for the entire state of Kentucky:

• Louisville is home to 633,000 in the city and about 1.4 million in metro Louisville/Jefferson County.
• Louisville is the?most populous city?in Kentucky and the largest metropolitan area in the state.
• Metropolitan Louisville spans across 12 counties in Kentucky and Indiana, including Jefferson, Clark, Bullitt, and Floyd.
• Louisville is?projected to grow?by about 12% by 2040, according to the City of Louisville.
• Median age?in Louisville is 39.1 years, about the same figure as the state and the U.S.
• 39% of the residents are between the ages of 20 and 49.
• Per capita income is $33,589 while median household income is $60,891.
• Nearly 60% of the households?in Louisville have a median income of $50,000 or greater.

The unemployment rate in Louisville is down to 3.7%,?about where it was prior to the pandemic. Industry sectors showing the?strongest job growth?include leisure and hospitality, education and health services, professional and business services, and information:

• GDP of the Louisville/Jefferson County?KY-IN MSA is over $74.3 billion, an increase of nearly 37% since 2010.
• Unemployment rate in the metropolitan area is 3.7%.
• Nearly 22,000 jobs were added to the market between May 2021 and May 2022.
• Kroger , Consumer Cellular, Inc. , and Quadrant Solutions to create nearly 900 new e-commerce and manufacturing jobs over the next few years.
• Largest employers in Louisville include 亚马逊 , 福特 , GE Appliances, a Haier company , Jefferson County Public Schools , and The Kroger Company.
• Metro Louisville is home to three of the six Fortune 500 companies in Kentucky – Humana , Kindred , and 百胜集团 .
• Louisville is also known for being the home of Muhammad Ali, KFC , the Kentucky Derby , Louisville Slugger baseball bats, and the University of Louisville Cardinals.
• Colleges and universities in the metro area include Boyce College , Spalding University , University of Louisville , and Indiana University Southeast right across the Ohio River in New Albany.
• Over 90% of the residents in Louisville are high school graduates or higher, while more than 30% hold a bachelor’s degree or an advanced degree.

Louisville is a strategic location for transportation and shipping, with 60% of the cities in the U.S. with a one-day drive or less. The transportation infrastructure of metropolitan Louisville includes three interstate highways, three inland ports, three freight rail service providers, and the Muhammad Ali International Airport.

Louisville Industrial Market

The Louisville industrial market has recorded positive net absorption for 28 consecutive quarters in a row. Leasing activity in Q2 2022?exceeded 3 million square feet, with Bullitt County and the West and Southwest submarkets seeing the most robust activity:

• Total industrial inventory: 178,529,445 SF
• Average asking rent: $4.89/SF per year, NNN
• Vacancy rate: 1.5%
• Absorption: 2,600,000 SF through Q2 2022
• Leasing activity: 5,363,571 through Q2 2022
• Key lease transactions by tenant: Arvato 974,050 SF, TAYLORED SERVICES FMI 317,800 SF, Greif Packaging 243,613 SF, 亚马逊 142,438 SF, DHL 132,352 SF
• New construction: 2,043,102 SF completed, with 9,539,380 SF under construction
• Investment sales trends:?$40 million in Q1 2022, median sales price $49/SF, market cap rate 7.2%
• Largest industrial submarkets: Airport, Clark County, Fern Valley

Learn more about Louisville industrial property for lease.

Louisville Office Market

The Central Business District is the hot spot in the Louisville office market, with 55,900 square feet of new office leases signed in the second quarter of this year. Tenants looking for office space in Louisville may find this is the ideal time to shop around,?with motivated landlords offering shorter lease terms?to attract new tenants and retain current renters:

• Total office inventory: 20,752,068 SF
• Overall average asking rents: $18.61/SF per year, full service gross
• Vacancy rate: 17.1%
• Absorption: 55,580 in Q2 2022
• Leasing activity: 495,703 SF (through Q2 2022)
• Key leases by tenant: Vogt Engineering LP 32,500 SF, Ellie Diagnostics 29,668 SF, Long John Silver's, LLC 21,920 SF
• New construction: 1,36,203SF currently under construction
• Investment sales trends:?$89 million in acquisitions?in Q1 2022, sales price $144/SF, market cap rate 9.1%
• Largest office submarkets: Central Business District, Hurstbourne/Eastpoint, Plainview/Middletown

Learn more about Louisville office property for lease.?

Louisville Retail Market

Grocery-anchored?retail in Louisville?is keeping the market stable, with local developers and out-of-state grocers renovating and entering the metro area. Publix Super Markets is building two new suburban locations, while Hy-Vee, Inc. plans to enter the market as part of the company’s broader expansion plans in the Midwest and Mid-South:

• Total retail inventory: 81,570,016 SF
• Average asking rent: $15.60/SF per year, NNN
• Vacancy rate: 3.0%
• Absorption: 520,162 SF year-over-year
• New construction: 84,139 SF delivered over the past 12 months, with 412,096 SF currently under construction
• Investment sales trends:?$92 million in Q1 2022, transaction sales price $164/SF, market cap rate 7.9%
• Median household income: $60,891 with 59% of households earning more than $50K per year

Learn more about Louisville retail property for lease.

Louisville Multifamily Market

A growing economy and declining unemployment are helping to?drive the demand for multifamily?property in Louisville. Class A apartment properties are seeing strong investor demand, with rents projected to rise over the next 12 months and vacancy on the decline. Louisville remains an attractive market for renters, with SmartAsset named the metro area the #1 most affordable city for solo renters:11, 13

Total housing units: 547,307

• Renter occupied: 33%
• Multifamily inventory: 125,880 units
• Average effective asking rent: $1,041
• Rent growth: 8.6% year-over-year
• Vacancy rate: 5.3%
• Investment sales trends:?$182 million in Q1 2022, median sales price per unit $145,355, 5.8% average cap rate
• Median?household income: $60,891
• Per capita income: $33,589

Learn more about Louisville multifamily property for sale.

How Crexi Connects Buyers and Tenants to Louisville Commercial Properties

Crexi’s marketplace delivers hundreds of Louisville commercial property listings directly to tenants and buyers’ computer screens. As Kentucky’s fastest-growing and largest city, Louisville represents a resilient and healthy economic center in which to invest commercial real estate interest and dollars.

Those who are seeking Louisville property for sale or lease harness Crexi’s powerful search tool to discover properties that suit their specific requirements. Principles narrow their browsing by asset and subtype, price or rent per square foot, square footage, cap rate, and even by the neighborhood’s zip code.

Upon finding their perfect match, buyers and tenants can reach out to the Louisville property broker with a few clicks. Crexi also allows property seekers to quickly download OMs and brochures and even submit a letter of intent (LOI) through its secure platform.

Intelligence Equips Investors with Data and Market Knowledge?

To help Louisville investors and tenants make the best decisions possible, Crexi also equips them with the Intelligence feature. Intelligence is a robust, third-party vetted database containing millions of property records, sales comps, 1st-party user behavior data, and over 50 updated MSA market reports.

Byers and tenants utilize Intelligence’s data-driven insights to understand Louisville’s latest market trends and make informed, more confident CRE decisions.

Intelligence is available to buyers, sellers, and tenants on a subscription basis.

How Louisville Brokers Thrive with Crexi

Crexi’s listing site houses more than 850 Louisville properties for sale or lease within the city limits alone. A thriving industrial hub thanks to its central, Midwestern location, Louisville more recently is seeing plentiful activity in suburban offices and a return to life in its retail sector post-pandemic. This is mainly thanks to its fast-growing population and Louisville’s hosting of many corporations’ regional headquarters.

Louisville brokers utilize Crexi to directly connect with buyers or tenants interested in joining the Louisville commercial real estate market.

Brokers can easily market properties throughout the Bourbon city across asset classes, including:

• Office buildings
• Industrial units
• Retail buildings
• Land parcels
• Multifamily units
• Mixed-Use developments
• Hospitality facilities
• Non-traditional buildings such as data centers, self-storage, etc.

Crexi’s listing software empowers Louisville commercial brokers with the right tools to guide properties from list to deal. In real-time, brokers can monitor buyer and tenant behavior, evaluate lead value with Crexi’s lead scores, and quickly connect with promising individuals with a few clicks. Crexi’s secure file vault also allows brokers to navigate and store due diligence paperwork online.

While Crexi’s free broker tools are powerful, brokers unlock the true capabilities of Crexi with Sale PRO, Lease PRO, and All PRO.?

Crexi’s All PRO Membership

Louisville brokers use Crexi Sale PRO and Lease PRO to accelerate and simplify their workflow, allowing them to quickly close more deals. PRO includes a robust lead management system equipped with in-depth marketing data, allowing brokers to quickly connect with actively-searching and already interested leads.?

PRO improves collaboration and simplifies operations with easily downloadable branded lead reports, allowing brokers to focus on deal management. PRO listings also are automatically placed at the top of search result pages, viewed first by relevant buyers and tenants seeking Louisville commercial property.

Crexi also emails weekly property blasts to a database including hundreds of thousands of buyers and tenants nationwide, curating a list of PRO listings custom-tailored to each lead’s search behavior. These machine-learning-powered, targeted emails earn a boosted engagement, winning a 10-15% higher average click-through rate.

Crexi PRO members also enjoy?access to Intelligence’s database?at no additional cost, harnessing market insights from more than millions of sales comps, property records, and detailed MSA reports.?

Brokers — including those in the Louisville-Jefferson County KY-IN MSA — use Crexi PRO to engage with the 84,060 leads searching for Louisville commercial real estate and the 12.5 million+ leads nationwide who searched using Crexi in 2021.

On average, PRO brokers earn 125% more leads and close up to eight times more deals than non-PRO subscribers.

Contact?[email protected]?to learn more about All PRO.