Louisville Industrial Figures Q1 2025

The Louisville industrial market recorded 662,353 sq. ft. of positive net absorption in the first quarter and a 30 basis point (bps) increase in the marketwide vacancy rate to 3.8% with four new vacant speculative projects and one build-to-suit project adding 1.2 million sq. ft. to the market. The marketwide average asking lease rate increased $0.25 per sq. ft. to reach $6.19 per sq. ft., which is a new record for the market. The marketwide availability rate increased 130 bps to 6.4% due to the addition of several large blocks of space, though several available spaces being marketed are in active renewal negotiations. After falling for several quarters, the available sublease space on the market increased in the first quarter. This figure represents 10.8% of the total available space in the market, though 36% of the sublease space is not modern bulk.