Louisville Retail Market Report

Limited development sustains strong fundamentals. Following the smallest completion tally on record in 2021, builders continue to add space at a rate below the metro's historical norm. This is welcome news for retail owners, as construction will not greatly impact performance trends in the near term. The metro ended last year with a sub-3 percent vacancy rate, one of the lowest among major markets nationally. In March, the CBD, Southeast Louisville and Plainview-Middletown were the only submarkets with vacancy above 5 percent, but conditions are improving quickly in the latter, evidenced by a 250-basis-point drop in vacancy year-over-year.