Louisville Retail Market Report

City plans for the future, as the metro maintains equilibrium. For the fourth straight year, metrowide vacancy hovers between 3.2 percent and 3.3 percent. That said, two-thirds of Louisville’s 24 submarkets experienced vacancy shifts of over 100 basis points last year, revealing dynamic local trends at play. Population growth is expected to stall in the coming year, while employment growth in 2025 is poised to remain relatively stable. As such, the Metro Chamber of Commerce recently released its 2025-2030 strategic plan for attracting businesses to central Louisville, with an emphasis on engaging boomerang talent through targeted events and advertising. If successful, this could raise competition for available retail space in the area. While 2025 retail deliveries will more than double 2024’s total, speculative projects are nearly absent from the current pipeline. Leasing, meanwhile, is led by retailers like Kroger and BJ’s Wholesale Club occupying over 100,000 square feet each this year, in addition to new Publix and Goodwill locations, both over 50,000 square feet.