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Market Report

Louisville Office Market Report

2Q 2023

Standout Class B/C Performance and Narrow
Construction Pipeline Bode Well for Louisville

Mid- and low-tier space demand keeps vacancy nationally-low. Conditions in Louisville are tight, exemplified by a 9.4 percent availability rate entering April — the second lowest among major U.S. metros. Vacancy in the mid- and lower-tier segments is a highlight, having held in the mid-5 to low-6 percent band since 2020. By comparison, Class A availability is roughly three times that, ending March at 18.1 percent as many larger firms shrink floor plans to accommodate remote operations. Still, trophy assets should continue to secure tenants. Among this year’s larger leases are HDR Engineering and Greater Louisville, Inc., which will take a combined 34,000 square feet in the PNC Tower downtown. The metro’s downtown is also outperforming most other major markets. At 11.6 percent in the first quarter, Louisville’s CBD places solidly within the top-10 tightest urban cores nationwide. 

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