Louisville Office Figures Q2 2023

The Louisville office market recorded 81,478 sq. ft. of positive net absorption this quarter, which is the first quarter with positive net absorption since year end 2021. Over one third of the net absorption took place in the Central Business District (CBD), which could be an indicator of downtown recovery should the trend continue. The overall market vacancy rate lowered 70 basis points (bps) to 19.2% and the marketwide average asking lease rate added $0.13 per sq. ft. to post $18.59 per sq. ft., though this rate is $0.52 sq. ft. lower than a year ago. Marketwide leasing activity rose by 23% quarter-over-quarter, recording 371,799 sq. ft., of which over half was new or expansion activity. In addition, despite the current interest rate climate, two properties were traded during the quarter, one in the CBD and one in the Suburbs.