Louisville Retail Market Report

Anchor leasing holds firm as shop-space demand growth slows. Louisville entered 2026 with vacancy still among the lowest in the nation, even as move-outs created pockets of big-box availability. However, large-format leasing held near its past decade average in 2025, with about 10 leases over 20,000 square feet signed, which should help absorb turnover. Limited construction will keep tenants focused on existing centers, such as Publix’s planned backfill of a former Neighborhood Walmart. Meanwhile, smaller-format leasing has cooled, as tight vacancy limits expansion options and discretionary, goods-oriented tenants adopt a more selective stance. A backdrop of modest job growth is likely to keep demand tilted toward daily-needs and service retail, highlighted by Wawa’s plan for six locations across the metro. Leasing should remain most durable in higher-income areas with strong regional access, led by the Inner East End toward St. Matthews and the Interstate 65 Corridor in South Clark County.