Louisville Industrial Figures Q4 2023

January 9, 2024 5 Minute Read

LDG Bohannon One 11-3-2023-62

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In the fourth quarter, a few large lease transactions and two leased speculative building completions helped to overcome several new vacancies, including a 631,000 sq. ft. vacancy, to maintain the streak of 35 consecutive quarters of positive net absorption. Despite a strong start to 2023, the final quarter yielded only a modest 186,185 sq. ft. of positive net absorption. However, that was enough to achieve the third highest year of net absorption in market history. The marketwide vacancy rate increased 100 basis points (bps) to 4.2% with these additions, and the marketwide average asking lease rate added $0.23 per sq. ft. to finish the year at an all-time record of $5.86 per sq. ft. The average asking lease rate is 19% higher year-over-year, and is 46% higher than three years ago.