Louisville Office Figures Q2 2026

Marketwide vacancy rate decreased 60 basis points to 22.1%
‒ CBD Class A vacancy rate decreased 300 basis points to 28.9%
‒ Suburban Class A vacancy rate decreased 70 basis points to 19.5%
‒ CBD Class A average asking lease rate increased $0.18 per sq. ft. to $19.57 per sq. ft.
‒ Suburban Class A average asking lease rate decreased $0.11 per sq. ft. to $22.44 per sq. ft.

In the second quarter, the 346,213 sq. ft. Class A tower at 401 South Fourth Street that was nearly vacant was removed due to a planned conversion to a hotel later this year. This change did not impact net absorption but did affect vacancy in the Central Business District (CBD) and overall market. Leasing activity dipped in the second quarter to 155,764 sq. ft. and the amount of available sublease space in the market increased slightly to just over 171,000 sq. ft., though this figure is still 38% lower than one year ago. The overall market average asking lease rate decreased slightly to $19.27 per sq. ft. and net absorption year-to-date is just under 217,000 sq. ft.