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Market Report

Louisville Office Market Report

4Q 2023

Narrow Construction Pipeline, Pockets of Demand
Offer Positive Notes Amid Climbing Vacancy

Limited supply additions support existing operations. Louisville continues to rank among the tightest U.S. office markets, with the suburban vacancy metric entering July at 7.9 percent, the second-lowest such rate among major metros nationwide. Adding to this, the current pipeline is scant, with just 160,000 square feet of traditional office space slated for delivery this year and completions in 2024 expected to be nominal. Inventory expansion appears warranted in some submarkets north of the Ohio River, however, with vacancy as low as 3.2 percent in South Clark County and even 1.0 percent in New Albany at mid-year. These submarkets are popular for smaller financial and professional services firms, indicating that lower-scale Class B projects would be well-received in this zone.
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