Nationwide, buyers and commercial tenants look to Louisville as a thriving, viable market in which to invest in commercial real estate.
Louisville’s quick-climbing population, economic resilience, low employment rates, and status as a corporate headquarters for multiple companies poise the city as an attractive market for CRE professionals. Those on the hunt for Louisville commercial property investments, as well as the brokers who represent them, find the CRE tools they need on Crexi: the one-stop shop for all things commercial real estate.
Buyers and tenants nationwide both utilize Crexi’s search mechanism to browse thousands of Louisville-Jefferson County MSA properties and find their perfect match. Approximately 92% of Crexi’s online traffic consists of actively searching investors and tenants, many of whom consider Louisville a prime commercial real estate investment.
Louisville brokers, too, harness Crexi’s powerful listing and marketing tools to quickly connect with prospective buyers and navigate deals from list to close. Crexi designed a suite of robust broker tools to quickly connect Louisville commercial brokers with the best leads, regardless of from where they’re searching.
To date, commercial real estate professionals have closed over $300 billion in deals and have marketed more than 500,000 properties valued at $1.2 trillion.
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.
The State of Commercial Real Estate in Louisville
Note: the current COVID-19 crisis has impacted this data. The coronavirus’ long term impact has yet to be determined, but CRE professionals should keep these developments in mind when evaluating the following information.
Louisville, Kentucky is best known for being home to Muhammad Ali, Louisville Slugger baseball bats, the Kentucky Derby, Kentucky Fried Chicken, and solid industrial and suburban office commercial real estate markets.
The Louisville metro area spans across over 3,200 square miles in north central Kentucky, bordering the Ohio River and Jefferson County in Indiana. Nicknamed “Bourbon City” and the “Gateway to the South”, Louisville is the largest city in Kentucky with a diverse robust economy of both public and private industry including education and healthcare, manufacturing, transportation and shipping, and high technology.
Louisville receives consistently high rankings from major publications as one of the top 100 best places for business and careers, diversity, and family living, and has a temperate four-season climate with average snowfall of less than 13 inches. The city has been ranked as one of the top 10 food cities in the world, and hosts Abbey Road on the River, the world’s largest Beatles Festival.
Louisville Regional Breakdown
Over the last decade the Louisville metropolitan area has grown by nearly 100,000 residents at a rate of 0.24% in the last year and 9% in the past decade. Recently, the city ranked as one of the fastest growing metros in the US.
Louisville is currently home to nearly 780,000 people in the city and almost 1.3 million residents in the Louisville-Jefferson County KY-IN MSA. The city serves as the 29th most populated in the country and the largest city in Kentucky. By 2040, the population of the Louisville metropolitan area is projected to reach 1.55 million residents, for a growth rate of about 16%. The median age in Louisville is 39.4 years, with 52% of the population between the ages of 20 and 59.
Louisville receives high rankings for key economic criteria such as job opportunities, average starting salaries, and employment growth. Many investors are surprised to learn that the job market rating in Louisville is better than major metro areas such as New York City, Miami, and Los Angeles.
The GDP of the Louisville-Jefferson County KY-IN MSA is over $72 billion and has grown by nearly 39% over the past eight years. Similarly, job growth in Louisville was 0.8% through the end of last year (pre-COVID), with an unemployment rate of just 3.8%. Louisville attracts employable residents with its low cost of living, about 6% below the national average.
In the last decade, 80,000 new jobs and more than 2,700 new businesses have been created in Louisville across key industry sectors including trade and transportation, education and healthcare, government, and professional and business services.
The largest private employers in the Louisville MSA include Amazon, Norton Healthcare, GE Appliances, United Parcel Services, Ford Motor Company, and The Kroger Company. Other major publicly traded companies based in Louisville include Papa John’s International, Yum Brands Inc., Texas Roadhouse Inc., Humana Inc., and Brown-Forman Corporation.
Approximately 91% of Louisville residents have a high school degree or higher, while 30.7% hold a bachelor’s degree or an advanced degree. The University of Louisville, Bellarmine University, and Louisville Bible College are three of the many top universities and colleges located in Louisville.
In terms of centrality, over 66% of the population in the U.S. can be reached in one day or less from Louisville. The city has three inland ports on the Ohio River, including Port of Indiana-Jeffersonville and Jefferson Riverport International. The Muhammad Ali International Airport in Louisville has commercial, private, military, and freight cargo flights to more than 30 domestic destinations.
Louisville Industrial Market
Industrial remains hot in Louisville, with nearly every submarket in the metro area seeing over 600,000 square feet of new industrial, warehouse, and distribution buildings under construction and 3.1 million square feet leased in Q3 2020.
Total industrial inventory hit 169,827,573 square feet in 2020’s third quarter, with an average asking rent overall of $4.14 per square foot. Vacancy rate overall decreased to 4.1%, with the third quarter totaling at 4,356,580 square feet of positive absorption year-to-date.
Currently, just above 4.9 million square feet are under construction with 2.7 millions square feet delivered to the market in 2020. The largest industrial submarkets are Airport, Clark County (Indiana), Riverport, and Fern Valley.
Louisville Office Market
The shift of office users in Louisville from the CBD to the suburbs is growing, with lease rates declining in the central business district while suburban office rents are on the rise. Although leasing activity is still in flux, market wide office leasing was up by 33% in Q3 2020 compared to the previous quarter.
Total office inventory saw 20,696,541 square feet hit the market, with average asking lease rates at $20.32 per square foot for Class A buildings and $17.08 for Class B assets. Overall vacancy rates were 20.7% in CBD compared to 11.2% suburban for Class A office space
Q3 2020 saw negative 104,773 square feet in absorption, while leasing activity gained 341, 924 square feet in the same period. The largest office submarkets are currently the Central Business District, Hurstbourne Parkway/Shelbyville Road, and East County.
Louisville Retail Market
The retail market in Louisville is slowly but surely beginning to recover as stores and restaurants commence reopening. After the last recession, Louisville was able to bounce back faster than some larger markets, and local CRE experts remain optimistic that the same will be true as the pandemic is brought under control.
The market saw 26,242,957 square feet of total retail inventory in Q3 2020, with average asking rents at $12.25 per square foot for NNN leases.
For the time being, retail developers in Louisville are playing it safe, with no new deliveries and no new retail projects under construction, creating a potential opportunity for investors who buy now to profit from a future supply shortage of retail property.
Louisville Multifamily Market
The Louisville metro area is a nationally-recognized regional distribution and warehousing hub with a pro-active business-friendly government. Greater Louisville has implemented an aggressive economic plan centered around recruitment, growth, and development which should help keep the demand for multifamily housing in Louisville strong and steady for years to come.
As of Q3 2020, there were 551,989 total housing units on the market, 33% renter occupied and averaging rents of $901 per month. Vacancy rates dropped to 4%, with Shelbyville Road, South Preston Highway, and South Bardstown Road as the most active multifamily submarkets.
How Crexi Connects Buyers and Tenants to Louisville Commercial Properties
Crexi’s marketplace delivers hundreds of Louisville commercial property listings directly to tenants and buyers’ computer screens. As Kentucky’s fastest-growing and largest city, Louisville represents a resilient and healthy economic center in which to invest commercial real estate interest and dollars.
Those seeking Louisville property for sale or lease harness Crexi’s powerful search tool to discover properties that suit their specific requirements. Principles narrow their browsing by asset and subtype, price or rent per square foot, square footage, cap rate, and even by the neighborhood’s zip code.
Upon finding their perfect match, buyers and tenants can reach out to the Louisville property broker with a few clicks. Crexi also allows property seekers to quickly download OMs and brochures and even submit a letter of intent (LOI) through its secure platform.
Intelligence Equips Investors with Data and Market Knowledge
To help Louisville investors and tenants make the best decisions possible, Crexi also equips them with the Intelligence feature. Intelligence is a powerful, third-party vetted database containing millions of property records, sales comps, 1st-party user behavior data, and over 50 update MSA market reports.
Byers and tenants utilize Intelligence’s data-driven insights to understand Louisville’s latest market trends and make informed, more confident CRE decisions.
Intelligence is available to buyers, sellers, and tenants on a subscription basis.
How Louisville Brokers Thrive with Crexi
Crexi’s listing site houses more than 100 Louisville properties for sale and nearly 600 for rent within the city limits alone. A thriving industrial hub thanks to its central, Mid-west location, Louisville more recently is seeing plentiful activity in suburban offices and a return to life in its retail sector post-pandemic. This is mainly thanks to its fast-growing population and Louisville’s hosting of many corporations’ regional headquarters.
Louisville brokers utilize Crexi to directly connect with buyers or tenants interested in joining the Louisville commercial real estate market.
Brokers can easily market properties throughout the Bourbon city across asset classes, including:
- Office buildings
- Industrial units
- Retail buildings
- Land parcels
- Multifamily units
- Mixed-Use developments
- Hospitality facilities
- Non-traditional buildings such as data centers, self-storage, etc.
Crexi’s listing software empowers Louisville commercial brokers with the right tools to guide properties from list to deal. In real-time, brokers can monitor buyer and tenant behavior, evaluate lead value with Crexi’s lead scores, and quickly connect with promising individuals with a few clicks. Crexi’s secure file vault also allows brokers to navigate and store due diligence paperwork online.
While Crexi’s free broker tools are powerful, brokers unlock the true capabilities of Crexi with Sale PRO, Lease PRO, and All PRO.
Crexi’s All PRO Membership
Louisville brokers use Crexi Sale PRO and Lease PRO to accelerate and simplify their workflow, allowing them to quickly close more deals. PRO includes a robust lead management system equipped with in-depth marketing data, allowing brokers to quickly connect with actively-searching and already interested leads.
PRO improves collaboration and simplified operations with easily downloadable branded lead reports, allowing brokers to focus on deal management. PRO listings also are automatically placed at the top of search result pages, viewed first by relevant buyers and tenants seeking Louisville commercial property.
Crexi also emails weekly property blasts to a database including hundreds of thousands of buyers and tenants nationwide, curating a list of PRO listings custom-tailored to each lead’s search behavior. These machine-learning-powered, targeted emails earn a boosted engagement, winning a 10-15% average click-through rate.
Crexi PRO members also enjoy access to Intelligence’s database at no additional cost, harnessing market insights from more than millions of sales comps, property records, and detailed MSA reports.
Brokers — including those in the Louisville-Jefferson County KY-IN MSA — use Crexi PRO to engage with the 26,593 leads searching for Louisville commercial real estate and the 3 million plus leads nationwide added in 2020 alone.
On average, PRO brokers earn 125% more leads and close up to eight times more deals than non-PRO subscribers.
Contact email@example.com to learn more about All PRO.