Louisville Office Market Report

Availability set to remain among lowest in nation. A historically conservative attitude toward office development has placed Louisville in a solid position, despite current macroeconomic flux. The metro entered 2023 tied for lowest vacancy among major markets nationwide, and is anticipated to retain single-digit percentage availability at the close of the year. Leasing volume steadily increased throughout 2022, with the fourth quarter marking the most prolific three-month span in this metric since the onset of the health crisis. Louisville’s geographic position as the South’s gateway to the Midwest has attracted the attention of companies overseeing distribution operations. A 55,000-square-foot Publix corporate facility headlines this year’s office move-ins, following the Florida-based grocer’s foray into the Kentucky market. Moving forward, spillover from cargo operations at Muhammad Ali International Airport could facilitate an additional source of demand from logistics firms seeking offices near this hub.