Louisville Office Figures Q1 2025

‒ Marketwide vacancy remained unchanged at 19.7%
‒ CBD Class A vacancy declined 120 basis points to 25.6%
‒ Suburban Class A vacancy declined 50 basis points to 13.9%
‒ CBD Class A average asking lease rate increased $0.21 per sq. ft. to $19.04 per sq. ft.
‒ Suburban Class A average asking lease rate declined $0.04 per sq. ft. to $21.97 per sq. ft.

The first quarter of 2025 started with steady leasing activity of 226,594 sq. ft. and marketwide positive net absorption of 3,030 sq. ft. This change to positive net absorption was led by the Central Business District (CBD) and the St. Matthews submarkets which combined for nearly 90,000 sq. ft. of positive net absorption. These gains were nearly offset, however, by negative net absorption across the remaining submarkets. The marketwide vacancy rate remained steady at 19.7%. and the marketwide availability rate increased 140 basis points (bps) to 23.9%. The amount of available sublease space decreased by 12% to just under 257,000 sq. ft. This figure has been trending downward and has decreased 45% from one year ago. The overall asking lease rate increased $0.15 per sq. ft. to $19.02 per sq. ft.