Louisville Office Market Trends

Office Rental Market

  • $17.81 2019 Avg. Asking Rent
  • 9.16 % 2019 Avg. Vacancy Rate
  • 149,270 2019 Office Completions (Sqft)
  • 614,650 2020 Estimated Pipeline (Sqft)
In 2019, the average asking rent for office space in Louisville was $17.81 per square foot, and the office vacancy rate across the market averaged 9.16 %. During 2019, developers added 149,270 square feet of new office space to the Louisville market inventory. Office developments estimated for delivery during 2020 total 614,650 square feet.

Average Office Asking Rents by Class

2019 Average Office Rent per Square Foot

  • Louisville Class A Office Buildings$19.02
  • Louisville Class B Office Buildings$17.25
  • Louisville Class C Office Buildings$11.66
  • KY Class A Office Buildings$19.96
  • KY Class B Office Buildings$17.60
  • KY Class C Office Buildings$11.66

Louisville, KY Office Asking Rents by Class

Office asking rents vary across the Louisville office market depending on several factors, one of which is property class. While rents for Class A office buildings in Louisville averaged $19.02 per square foot in 2019, Class B office properties garnered average rental rates of $17.25 per square foot. Rental rates for Class C office property in Louisville averaged $11.66 per square foot. On a statewide level, Class B office space rents averaged $17.60 per square foot, while rents for Class A office space across Kentucky averaged $19.96 per square foot. On average, Class C office properties in Kentucky commanded rents of $11.66 per square foot.

2019 OFFICE VACANCY RATES

Submarket Asking Rents Vacancy Rates
Northeast $23.94 4.98 %
St Matthews $21.60 3.01 %
Hurstbourne - Eastpoint $20.82 4.58 %
South Central $17.82 9.21 %
Downtown - Old Louisville $17.28 4.30 %
CBD $16.83 10.30 %
Southeast $16.81 3.60 %
Middletown $15.52 14.57 %
Data provided by Commercial Edge
  • The lowest office vacancy rate in 2019 in Louisville was 3.01 % in the St Matthews submarket, where asking rents averaged $21.60.
  • The highest office vacancy rate in 2019 in Louisville was 14.57 % in the Middletown submarket, where asking rents averaged $15.52.

OFFICE CONSTRUCTION IN Louisville, KY

  • Louisville, KY Total Sqft completed in 2019 149,270
  • Louisville, KY Total Sqft under construction in 2020 614,650
10 Largest Office Buildings in Louisville
Building name Address Total Sqft Year built
Waterfront Plaza 325 West Main Street, 40202 737,776 1991
National City Tower 101 South 5th Street, 40202 723,300 1972
Humana Waterside Building 101 East Main Street, 40202 705,000 1991
Aegon Center 400 West Market Street, 40202 633,650 1993
Brown-Forman Headquarters 850 Dixie Hwy, 40210 600,884 1935
PNC Plaza 500 West Jefferson Street, 40202 556,042 1971
Humana Building 502 West Main Street, 40202 525,000 1985
Dixie Medical Mall at Dixie Manor Shopping Center 6801 Dixie Hwy, 40258 353,810 1997
Brown & Williamson Tower 401 South 4th Street, 40202 346,213 1982
Meidinger Tower 462 South 4th Street, 40202 332,129 1983
Largest Office Properties Recently Completed in Louisville
Office building Address Sqft Completed
3050 Terra Crossing Blvd 3050 Terra Crossing Blvd, 40245 132,000 2021
ShelbyHurst Office Campus - 435 North Whittington Pkwy 435 North Whittington Pkwy, 40222 119,650 2021
L&N Federal Credit Union Headquarters 9113 Smyrna Pkwy, 40229 70,000 2021
2550 Eastpoint Pkwy 2550 Eastpoint Pkwy, 40223 48,000 2021
QSR Automations Headquarters 2710 Buddeke Drive, 40206 36,739 2021
5900 US Highway 42 5900 US Highway 42, 40241 40,000 2020
Two Olympic Park Plaza 4803 Olympia Park Plaza, 40241 135,917 2019
Old Henry Crossing #7 13906 Promenade Green Way, 40245 66,050 2019
Old Henry Crossing #6 2201 High Wickham Place, 40245 60,760 2019
900 East Main Street 900 East Main Street, 40206 28,760 2019
Data provided by Commercial Edge

Office Spaces for Rent in Kentucky

LOUISVILLE OFFICE SALES TRENDS

  • $77.302019 Avg. Price per Sqft
  • -21.03 %Y-o-Y Avg. PpSF Change
  • $65.5M2019 Office Sales Volume
  • 82019 Number of Transactions

In 2019, office sales in Louisville averaged $77.30 per square foot. This marked a -21.03 % decrease in office price per square foot, compared to the previous year. A total of 8 office sales closed on the Louisville office market in 2019, amounting to a total sales volume of $65.5M.

Average Office Sale Price per Sqft

Louisville, KY Sales Trends

  • Louisville Price per Sqft$77.30
  • Kentucky Price per Sqft$76.63

Office Sales - Trend and Volume

  • Louisville, KY Total Office Sales Volume in 2019 $65.5M
  • Louisville, KY Total Number of Office Sales Closed in 2019 8

Largest Louisville Office Sales in 2019

Property name Address Date Price
312 South 4th Street & 416 West Jefferson Street 312 South 4th Street 7/9/2019 $19,150,000
1901 Campus Place 1901 Campus Place 10/29/2019 $15,260,000
Paragon Place 9100 Shelbyville Road 8/6/2019 $10,850,000
734 West Main Street 734 West Main Street 5/31/2019 $6,050,000
1231-1241 Durrett Lane 1231 Durrett Lane 9/12/2019 $5,500,000
Data provided by Commercial Edge

See trends for nearby markets

The Louisville office market contains an inventory of 27,827,490 square feet of office space, in 334 buildings that are equal to or larger than 25,000 square feet.

This market trends report is based on analysis of city-level data. Averages were calculated based on values dated January 1st 2019 through December 31st 2019. Construction pipeline data shown is valid as of April 2020. The information on this page was compiled using data provided by our sister company, CommercialEdge – a market intelligence solution which offers comprehensive knowledge on all Louisville commercial properties sized 25,000 square feet or larger.

While every effort was made to ensure the accuracy of the data presented in this report, the information is provided “as is” and neither CommercialCafe nor CommercialEdge can guarantee that the information provided is complete.