The Louisville Commercial Real Estate Market

Shanti Ryle

May 27, 2025

The waterfront of Louisville's downtown and bridge

Louisville blends historic charm with modern innovation, offering a unique mix of culture, commerce, and connectivity. Known for the Kentucky Derby, a booming bourbon scene, and a central location along the Ohio River, the city is a growing economic engine. Its logistics strengths, diverse industry base, and livability make it a smart play for businesses and investors looking to tap into long-term opportunities. From revitalized neighborhoods to industrial growth corridors, Louisville continues to evolve while staying grounded in its strong sense of identity.

To date, Crexi has facilitated over $1 trillion in transactions, 8.6 billion square feet leased, and supports a growing community of more than 2 million monthly active users.

Crexi proudly serves Louisville, Jeffersontown, Mt. Washington, Clarksville, Shiveley, and the entirety of the Bourbon City area as its fastest-growing digital commercial real estate marketplace.

Louisville's yellow bridge set against the downtown skyline during the day

The State of Commercial Real Estate in Louisville

Without a doubt, Louisville is a city that knows how to strike a balance between legacy and reinvention. Perched along the Ohio River and serving as Kentucky’s largest city, it blends Southern hospitality with a Midwestern work ethic, creating a business-friendly environment that still feels personal and inviting. Known around the world for the Kentucky Derby and its legendary bourbon trail, Louisville is also the hometown of Muhammad Ali and a hub for arts, innovation, and bold ideas.

Louisville was the first city in Kentucky to adopt zoning and urban planning measures, a move that showed the region’s early commitment to thoughtful growth and smart development. That forward-thinking mindset still drives the city’s evolution today. Walk through its historic neighborhoods, and you’ll find adaptive reuse projects, thriving retail corridors, and an increasing number of commercial developments designed with long-term community impact in mind.

Louisville’s economy is fueled by a diverse mix of sectors, including logistics, healthcare, food and beverage, and advanced manufacturing. It also boasts a strategic central location that supports one of the most robust distribution networks in the U.S. That combination of access, affordability, and talent continues to draw interest from national investors, developers, and tenants alike.

From bourbon bar rooftops to busy industrial parks, Louisville is writing its next chapter, and commercial real estate is helping shape the story.

Louisville Regional Breakdown

Louisville’s population growth tells a clear story: people are choosing to stay, settle, and build a life here. The city’s steady expansion isn’t limited to its historic core; it’s playing out across the entire metro area, from lively riverfront towns to fast-growing suburban hubs. A balanced mix of age groups, a modest cost of living, and a solid economic foundation continue to draw in new residents - and city projections predict that the growth won’t slow down anytime soon.

Louisville is home to over 640,700 within city limits and about 1.3 million in the Louisville/Jefferson County metro area.
According to the most recent U.S. Census report, the population of the city of Louisville has grown approximately 65% since 2020.
The largest municipalities in the metro area include Jeffersontown, Jeffersonville, New Albany, Clarksville, and Shelbyville.
The median resident age is 39.5, about the same as the overall U.S. figure.
Per capita income is $38,759, and median household income is $68,921, both figures a little less than in the United States, based on data from CensusReporter.org.

Customers at a farmers market in downtown Louisville

Louisville Job Market

Louisville’s economy continues to punch above its weight, blending a deep industrial legacy with a forward-thinking business landscape. From healthcare innovation to logistics and advanced manufacturing, the city’s diverse employer base supports a strong, resilient workforce.

With major players like UPS, Humana, and Ford anchoring the market - and an impressive talent pipeline fed by local universities - Louisville is well-positioned for long-term economic growth. Its affordability, connectivity, and collaborative business climate have earned national attention, making it a standout among midsized U.S. metros.

Gross Domestic Product for Louisville/Jefferson County was $97.7 billion at the end of 2024, according to data from the St. Louis Federal Reserve.
The unemployment rate is 4.6% (as of March 2025), with a workforce of more than 670,000 employees.
Key industries in Greater Louisville include healthcare and aging innovation, business services, logistics and e-commerce, advanced manufacturing, and food and beverage.
The top 5 companies (based on local employees) are United Parcel Service, Jefferson County Public Schools, Norton Healthcare, Ford Motor Company, and Humana, Inc.
Louisville has been counted among the top five U.S. metro areas for economic development, and has also received accolades for affordability and inclusivity.
Nearly 92% of residents are high school graduates, while over 32% hold bachelor’s or post-graduate degrees.
The Louisville metro area is home to the University of Louisville, a major public research institution; Bellarmine University, known for its liberal arts programs; and Jefferson Community and Technical College, the state's largest two-year, open-admission college.
Louisville's transportation infrastructure is well-connected, featuring major interstates such as I-64, I-65, and I-71, the Louisville Muhammad Ali International Airport (SDF), and the strategic Port of Louisville, making it a crucial logistics hub in the region.

The Belle of Louisville steam paddle boat on the river

Louisville Industrial Market

Louisville’s industrial market is finding a more sustainable pace after a period of rapid growth and shifting tenant activity. While absorption and leasing have cooled slightly compared to recent highs, steady demand (especially for bulk space) is keeping the market moving. Developers are taking a more measured approach, focusing on build-to-suit and strategically located speculative projects. As the city’s footprint continues to expand, particularly in southern Indiana and the airport corridor, Louisville remains a key logistics and distribution hub in the Midwest.

Market overview (Cushman & Wakefield Q1 2025)

Inventory: 204,049,045 SF
Vacancy rate: 4%
Absorption: 221,016 SF (YTD)
Leasing activity: 1,336,790 SF (YTD)
Key leases by tenant: FSK/Ford (426,300 SF), A-1 Pallet (146,575 SF), Danfoss (132,352 SF)
Deliveries: 1,007,538 SF (YTD)
Under construction: 4,788,290 SF
Largest submarkets: Airport, Clark County, Riverport, Fern Valley

Crexi Insights

These are the most recent industrial lease and sales trends from Crexi Insights (as of May 2025):

For Lease (active)

Asking rate/SqFt (median): $9 per year
Median SqFt/listing: 12,000
Days on market: 236
Total listings on Crexi: 91 spaces

For Sale (active)

Median asking price: $1.6 million
Price/SqFt: $84
Asking cap rate: 7%
Days on market: 209
Total listings on Crexi: 38

Sales Comps (past 12 months)

Median sold price: $700,000
Sold price/SqFt: $75
Total sales volume: $50.6 million
Sold cap rate: 3.4%
Median SqFt sold/transaction: 6,876
Total SqFt sold: 1.4 million
Days on market (median): 170

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The inside of an office building in Louisville, Kentucky

Louisville Office Market

Louisville’s office market is navigating a period of transition shaped by shifting tenant preferences and a renewed focus on downtown revitalization. While leasing has slowed and vacancy rates have ticked upward, there is still consistent demand for high-quality Class A space, especially in key submarkets such as Hurstbourne and the Central Business District.

Redevelopment plans and public investment are helping breathe new life into older buildings, signaling long-term confidence in the market. As conversions, upgrades, and targeted development efforts take shape, the office sector is gradually redefining itself to meet the needs of a more selective and evolving tenant base.

Market overview (Cushman & Wakefield Q1 2025)

Inventory: 20,513,051 SF
Vacancy rate: 17.9%
Absorption: -254,308 SF (YTD
Leasing activity: 70,216 SF (YTD)
Key leases by tenant: Steptoe & Johnson, PLLC (16,617 SF), Carewise Health (14,195 SF), Terracon Consultants (10,542 SF)
Under construction: 72,000 SF
Largest submarkets: Central Business District, Hurstbourne/Eastpoint, South Central

Crexi Insights

For the most recent insights into the Louisville office market, Crexi Insights is your go-to resource, providing comprehensive coverage of leasing trends, sale listings, and comparable data as of May 2025.

For Lease (active)

Asking rate/SqFt (median): $18 per year
Median SqFt/listing: 2,736 SF
Days on market: 413
Total listings on Crexi: 273 spaces

For Sale (active)

Median asking price: $1.5 million
Price/SqFt: $156
Asking cap rate: 6.4%
Days on market: 208
Total listings on Crexi: 69

Sales Comps (past 12 months)

Median sold price: $508,000
Sold price/SqFt: $96
Total sales volume: $36 million
Median SqFt sold/transaction: 4,315 SF
Days on market (median): 160

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A business person working at their laptop at a desk

Louisville Retail Market

Louisville’s retail market remains resilient, even as broader economic conditions shift and local absorption patterns fluctuate. Vacancy remains low across much of the metro, keeping competition high for well-located storefronts and retail corridors.

While leasing activity has softened slightly, rental rates continue to rise, driven by a mix of national brands and expanding local operators. Strategic planning efforts are underway to boost future demand, and with limited speculative construction in the pipeline, quality space is likely to stay in short supply.

Market overview (NAR Commercial Real Estate Report Q3 2024)

Inventory: 8,488,528 SF
Vacancy rate: 1.7%
Net absorption (Q3 2024): -16,819 SF
Absorption: -60,978 SF (12-month)
Market rent growth: 4.5%

Crexi Insights

Retail lease and sales trends from Crexi Insights (as of May 2025):

For Lease (active)

Asking rate/SqFt (median): $15 per year
Median SqFt/listing: 3,484 SF
Days on market: 347
Total listings on Crexi: 203 spaces

For Sale (active)

Median asking price: $1.5 million
Price/SqFt: $185
Asking cap rate: 6.2%
Days on market: 163
Total listings on Crexi: 108

Sales Comps (past 12 months)

Median sold price: $550,000
Sold price/SqFt: $136
Total sales volume: $81.7 million
Sold cap rate: 6.9%
Median SqFt sold/transaction: 2,964 SF
Days on market (median): 137

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a one way street sign in downtown Louisville, surrounded by multifamily apartment buildings

Louisville Multifamily Market

Louisville’s multifamily market continues to deliver steady performance, with rent growth, occupancy, and new development all tracking within healthy, manageable ranges. While construction activity remains elevated, demand is keeping pace as residents seek out affordability and quality of life in a city that blends urban convenience with small-town charm. Investors remain active across the region, particularly in well-located properties that offer value-add potential or strong fundamentals.