Louisville Office Rent Price & Sales Report

2021 Office Space Rent & Sales

  • $19.73 2021 Avg. Asking Rent
  • 14.76% 2021 Office Vacancy Rate
  • $41.6M2021 Total Office Sales
  • $168.32Avg. Sale Price/SF

Louisville office price per square foot in 2021 was $19.73 on average. The local office market recorded an average vacancy rate of 14.76% across all asset classes combined. The 4 transactions that closed here throughout 2021 amounted to a total sale volume of $41.6M. Louisville office space commanded an average sale price per square foot of $168.32.

Average Rent by Office Class

2021 Average Office Rent per Square Foot

  • Louisville Class A & A+ Office Space$21.81
  • Louisville Class B Office Space$18.41
  • Kentucky Class A & A+ Office Space$21.73
  • Kentucky Class B Office Space$18.59

Louisville, KY Office Asking Rents by Class

2021 Office Vacancy Rates in Louisville

Submarket Asking Rents Vacancy Rates
Hurstbourne - Eastpoint $22.69 16.37%
Northeast $22.44 4.94%
St Matthews $20.02 4.30%
South Central $18.92 13.78%
CBD $17.85 19.80%
Downtown - Old Louisville $17.50 3.75%
Middletown $17.46 15.61%
Southeast $17.03 6.62%
Data provided by Commercial Edge
Submarket differences in factors such as property mix, degree of accessibility, and availability of amenities influence not only variation in office rent price, but also in vacancy rates. The overall office vacancy rate on the Louisville market was 14.76% in 2021. Looking at the market stats on a more granular level, data shows that the lowest office vacancy rate in Louisville was 3.75% in the Downtown - Old Louisville submarket, while the highest office vacancy in the market was 19.80%, recorded in CBD.

Office Spaces for Rent in Kentucky

Louisville Office Sale Price per SF

  • $168.322021 Avg. Price per SF
  • 16.88%Y-o-Y Avg. PpSF Change
  • $41.6M2021 Office Sales Volume
  • 42021 Number of Transactions

Louisville, KY Sale Price per SF Trend

  • Louisville Avg. Sale Price per SF in 2021$168.32
  • Kentucky Avg. Sale Price per SF in 2021$150.96
Louisville office space cost in 2021 marked a +16.88% change compared to the previous year. The sale price for office space in Louisville averaged $168.32 per square foot in 2021, across all market subdivisions and asset classes. Conversely, the statewide Kentucky average office sale price during the same time period was $150.96 per square foot.

2021 Office Sales Volume

  • Louisville, KY Total Office Sales Volume in 2021 $41.6M
  • Louisville, KY Total Number of Office Sales Closed in 2021 4
A total of 4 deals closed on the Louisville office market in 2021, adding up to a yearly sales volume of $41.6M. Notably, the largest transaction on the market saw 717 West Broadway change hands for $26,000,000 on 3/12/2021.

Largest Louisville Office Sales in 2021

Property name Address Date Price
717 West Broadway 717 West Broadway 3/12/2021 $26,000,000
Madrid Building 545 South Third Street 11/17/2021 $8,750,000
9700 Ormsby Station Road 9700 Ormsby Station Road 9/30/2021 $4,050,000
231 East Main Street 231 East Main Street 12/10/2021 $2,750,000
Data provided by Commercial Edge

Coworking Spaces in Kentucky

2021 Office Construction in Louisville, KY

  • Louisville, KY Total SF completed in 2021 357,089
  • Louisville, KY Total SF under construction in 2022 635,005

During 2021, 357,089 square feet of new office space were delivered across the market. At the close of 2021, the Louisville office inventory included 4 buildings equal to or larger than 25,000 square feet, which comprised 357,089 square feet of office space. Looking forward, development activity throughout 2022 is estimated to add 635,005 square feet of office space to the market, before year-end.

Largest Office Properties Recently Completed in Louisville
Office building Address SF Completed
2550 Eastpoint Pkwy 2550 Eastpoint Pkwy, 40223 48,000 2023
ShelbyHurst Office Campus - 435 North Whittington Pkwy 435 North Whittington Pkwy, 40222 119,650 2021
Epic Plaza 12910 Factory Lane, 40245 19,097 2019
2612 Tucker Station Rd. Louisville 2612 Tucker Station Rd. Louisville, 40299 730 2019
Kindred Square II 658 South 4th Street, 40202 146,958 2018
Valley College Drive Office Space 833 Valley College Drive, 40272 1,146 2017
946 Goss Avenue 946 Goss Avenue, 40217 228,447 2016
Woodlawn Center Office Park, Phase II 297 North Hubbards Lane, 40207 45,000 2016
Park Place Lofts 400 East Main Street , 40202 0 2015
US WorldMeds First Floor 4441 Springdale Rd, 40241 12,848 2014

Worth noting among recent office completions on the Louisville market is 2550 Eastpoint Pkwy, which is currently the largest new office development in the city, at 48,000 square feet.

Data provided by Commercial Edge

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This market stats report is based on analysis of city-level data that includes office properties equal to or larger than 25,000 square feet in size. Averages were calculated based on values dated January 1st 2021 through December 31st 2021. Construction pipeline data represented herein is valid as of April 2022. The information on this page was compiled using data provided by CommercialEdge, a market intelligence solution which offers comprehensive real market 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.