Louisville, KY Office Overview
The Louisville market includes high-density submarkets like Jeffersontown, Eastpoint Parkway, St Matthews, and Lyndon. With a metropolitan population of nearly 1.3 million, the local commercial real estate market sees significant demand from the health care, transportation, high-technology, and tourism industries.
As of mid-2017, the market encompasses nearly 27 million square feet of existing office space in properties larger than 50,000 square feet. As the largest city in Kentucky, the market in Louisville posts robust demand for office space from diverse industries such as shipping, medical sciences, and manufacturing.
Louisville, KY Office Inventory Description
Louisville sprawls along the banks of the Ohio River and is impacted by the unique business cultures of both the Old South and the Midwest. With a gross metropolitan product of nearly $67 billion annually, the demand for employment continues to grow. Nearly 40% of the office space in Louisville is Class A, with Class B inventory accounting for nearly all of the remaining 60%.
Trophy office properties include the 9901 Linn Station Road building, Hurstbourne Place on Shelbyville Road, and the Forum Office Park Building IV on Hurstbourne Parkway in the suburb of Lyndon, Kentucky.
Louisville, KY Commercial Inventory Breakdown
Office Spaces
Total: 27,855,366 SF
By square footage range:
- 50k to 100k SF: 7,688,573 SF / 27.6% of total office
- 100k to 500k SF: 15,685,141 SF / 56.31% of total office
- 500k to 1M SF: 4,481,652 SF / 16.09% of total office
By class:
- Class A: 11,353,106 SF / 40.76% of total office
- Class B: 14,445,637 SF / 51.86% of total office
- Class C: 453,004 SF / 1.63% of total office
Top 10 Largest Office Buildings
in Louisville
| Office building | Address | 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 |
| Louisville City FC - Office Building | SWC Adams Street & Cabel Street, 40206 | 340,000 | n/a |
Most Recently-Built Office Buildings
in Louisville
| Office building | Address | Sqft | Year built |
|---|---|---|---|
| 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 |
| Novak Center For Children’s Health | 411 East Chestnut Street, 40202 | 176,000 | 2018 |
| Kindred Square II | 658 South 4th Street, 40202 | 146,958 | 2018 |
| ShelbyHurst Office Campus - Building 900 | 805 North Whittington Pkwy, 40222 | 140,000 | 2018 |
| Old Brownsboro Crossing - 4915 Norton Healthcare | 4915 Norton Healthcare Blvd, 40241 | 102,140 | 2018 |
| Old Henry Crossing #4 | 2000 High Wickham Place, 40245 | 65,000 | 2017 |
| Lyndon Centre Office Park | 506 Lyndon Lane, 40222 | 44,252 | 2017 |
Louisville, KY Green Office Space
While not yet ranking in the Top 30 markets in the U.S., green office space in Louisville is on the rise, with dozens of projects scattered throughout the metropolitan area.
The ShelbyHurst Office Campus on 600 North Hurstbourne Parkway is a local example of a Class A green building. With over 125,000 square feet of space, this 4-story property was built in 2012 and is LEED certified. As tenants, national and global investors seek out green certified assets for their use and portfolios, the green office trend will continue to take root in Louisville.
Developers are aware of this demand, and with the number green building projects underway, Louisville is making progress in becoming one of the top green office markets. The 2017 National Green Building Adoption Index looked at properties in 30 major U.S. markets and discovered, EPA Energy Star-labeled buildings included, that the percentage of green certification has increased nationally from under 5% in 2005 to 38% as of mid-2017.
Louisville, KY's Top Office-Using Sectors
Demand for commercial real estate in Jefferson County is driven by a combination of multiple businesses including traditional manufacturing, transportation, and health care.
- Manufacturing – Ford Motor Company, GE Appliances, and Brown-Forman all create strong demand for commercial real estate in the metro.
- Transportation – The UPS Worldport at the Louisville International Airport, and the inland Jefferson Riverport International both have a major impact on local demand.
- Health Care & Insurance – As home to Humana health insurance, Louisville is a major center for the health care and medical sciences sectors that generate white collar employment.
- Corporate Offices – The demand for while collar workers in Louisville also comes from companies such as Norton Healthcare, Kindred Healthcare, KentuckyOne Health, and LG&E Energy that create employment.
Louisville Demographics
Population
- Total Population740,090
- Male Population(48.3 %) 357,659
- Female Population(51.7 %) 382,430
- Median Age38.00
Income/Financial
- Average Household Income$82,141
- Median Household Income$52,179
- Median Income Under 25$33,062
- Median Income 25-44$60,792
- Median Income 45-64$59,762
- Median Income Over 65$37,566
News
2019 US Office Pipeline – NYC, the Bay Area and San Francisco Set to Deliver 33 MSF of Office Space
April 10, 2019
Since 2009, the U.S. economy has had more than 110 consecutive months of growth, making this the second longest economic expansion since the Great Depression. After a rather tepid 2017 performance, the U.S. office market gathered some steam in 2018, adding 76 million square feet of new office sp...
2018 Office Check-In: Top US Markets for Development, Largest Projects of the Year
September 20, 2018
We’re almost halfway through H2 2018, and it’s high time to check up on construction activity, as well as the state of the U.S. office pipeline when compared to previous analyses. Last year around the same time, we looked at top U.S. cities for office delivery during the fall-winter season, and ...
Amazon’s search for a new home has stirred up city officials and developers across the country, and 238 applicants across North America have expressed interest in housing the company’s next headquarters. Of course, the retail giant has a few requirements: the chosen metropolitan area should idea...