Louisville Retail Market Report

National brands continue expansion amid headwinds. In February, Crunch Fitness will move into a 30,000-square-foot storefront on Bardstown Road, inaugurating its third Louisville facility after entering the market in 2019. Florida-based grocer Publix is also set to maintain a commendable pace in its ongoing Kentucky expansion, opening two additional operations in Jefferson County over the next 18 months. High-profile experiential retail additions are also on the way, with Puttshack and Sky Zone taking a combined 53,700 square feet off the market in the first quarter. These new offerings will, however, contest with short-term demand headwinds. The local employment base will follow up last year’s strong growth with a minor contraction, which will likely result in some belt-tightening as inflation enters 2023 above the typical annual rate. On a more positive note, the market’s long-term prospects — including a major cargo hub at Louisville International Airport — should give tenants a solid incentive to pursue space despite shifting economic outlooks, keeping net absorption positive.