Louisville Office Rent Price & Sales Report

2023 Office Space Rent & Sales

  • $19.71 2023 Avg. Asking Rent
  • 1.39% Y-o-Y Avg. Asking Rent Change
  • 12.53% 2023 Office Vacancy Rate
  • $97.1M2023 Total Office Sales
  • $86.08Avg. Sale Price/SF

Louisville office price per square foot in 2023 was $19.71 on average. This marked a +1.39% change in office space price per square foot compared to the previous year. The local office market recorded an average vacancy rate of 12.53% across all asset classes combined. The 11 transactions that closed here throughout 2023 amounted to a total sale volume of $97.1M. Louisville office space commanded an average sale price per square foot of $86.08.

See how this market compares to the national average: U.S. office space rent & sales.

Average Rent by Office Class

2023 Average Office Rent per Square Foot

  • Louisville Class A & A+ Office Space$20.80
  • Louisville Class B Office Space$18.81
  • Kentucky Class A & A+ Office Space$21.07
  • Kentucky Class B Office Space$18.98
  • Kentucky Class C Office Space$19.82

Louisville, KY Office Asking Rents by Class

2023 Office Vacancy Rates in Louisville

Submarket Asking Rents Vacancy Rates
Louisville - Northeast $22.73 2.68%
Louisville - St. Matthews $20.82 8.27%
Louisville - East $20.47 7.47%
Louisville - Central East $20.04 16.44%
Hurstbourne Corridor $19.92 10.38%
Louisville - Central Business District $19.49 18.52%
Louisville - South $18.49 6.57%
Louisville - West $18.21 32.26%
Louisville - Central $16.46 1.01%
Data provided by Commercial Edge
Submarket differences in factors such as property mix, degree of accessibility, and availability of amenities influence not only variation in office rent price, but also in vacancy rates. The overall office vacancy rate on the Louisville market was 12.53% in 2023. Looking at the market stats on a more granular level, data shows that the lowest office vacancy rate in Louisville was 1.01% in the Louisville - Central submarket, while the highest office vacancy in the market was 32.26%, recorded in Louisville - West.

Office Spaces for Rent in Kentucky

Louisville Office Sale Price per SF

  • $86.082023 Avg. Price per SF
  • -22.92%Y-o-Y Avg. PpSF Change
  • $97.1M2023 Office Sales Volume
  • 112023 Number of Transactions

Louisville, KY Sale Price per SF Trend

  • Louisville Avg. Sale Price per SF in 2023$86.08
  • Kentucky Avg. Sale Price per SF in 2023$91.32
Louisville office space cost in 2023 marked a -22.92% change compared to the previous year. The sale price for office space in Louisville averaged $86.08 per square foot in 2023, across all market subdivisions and asset classes. Conversely, the statewide Kentucky average office sale price during the same time period was $91.32 per square foot.

2023 Office Sales Volume

  • Louisville, KY Total Office Sales Volume in 2023 $97.1M
  • Louisville, KY Total Number of Office Sales Closed in 2023 11
A total of 11 deals closed on the Louisville office market in 2023, adding up to a yearly sales volume of $97.1M. Notably, the largest transaction on the market saw 2701 Eastpoint Pkwy change hands for $16,525,000 on 9/7/2023.

Largest Louisville Office Sales in 2023

Property name Address Date Price
2701 Eastpoint Pkwy 2701 Eastpoint Pkwy 9/7/2023 $16,525,000
Southend Medical Center 5129 Dixie Hwy 9/22/2023 $14,050,000
One Triton Office Park 13551 Triton Park Blvd 9/21/2023 $14,027,580
Brown & Williamson Tower 401 South 4th Street 4/4/2023 $9,000,000
Old Henry Crossing #2 2110 High Wickham Place 7/12/2023 $7,500,000
Data provided by Commercial Edge

Coworking Spaces in Kentucky

2023 Office Construction in Louisville, KY

  • Louisville, KY Total SF completed in 2023 224,800
  • Louisville, KY Total SF under construction in 2024 198,205

During 2023, 224,800 square feet of new office space were delivered across the market. At the close of 2023, the Louisville office inventory included 3 buildings equal to or larger than 25,000 square feet, which comprised 224,800 square feet of office space. Looking forward, development activity throughout 2024 is estimated to add 198,205 square feet of office space to the market, before year-end.

Largest Office Properties Recently Completed in Louisville
Office building Address SF Completed
New Construction - Retail - Medical - Office For Lease 6305 East Manslick Road, 40219 2,473 2024
Old Henry Crossing #7 13906 Promenade Green Way, 40245 66,050 2019
2612 Tucker Station Rd. Louisville 2612 Tucker Station Rd. Louisville, 40299 730 2019
Kindred Square II 658 South 4th Street, 40202 146,958 2018
ShelbyHurst Office Campus - 500 North Hurstbourne Pkwy 500 North Hurstbourne Pkwy, 40222 120,000 2016
Woodlawn Center Office Park, Phase II 297 North Hubbards Lane, 40207 45,000 2016
12450 Lake Station Place 12450 Lake Station Place, 40299 38,400 2016
Park Place Lofts 400 East Main Street , 40202 3,058 2015
Atria Support Center 300 East Market Street, 40202 200,000 2013
Suite 9370 Cedar Springs Retail Center 9370 Cedar Center Way, 40291 2,627 2007

Worth noting among recent office completions on the Louisville market is New Construction - Retail - Medical - Office For Lease, which is currently the largest new office development in the city, at 2,473 square feet.

Data provided by Commercial Edge

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This market stats report is based on analysis of city-level data that includes office properties equal to or larger than 25,000 square feet in size. Averages were calculated based on values dated January 1st 2023 through December 31st 2023. Construction pipeline data represented herein is valid as of April 2024. The information on this page was compiled using data provided by CommercialEdge, a market intelligence solution which offers comprehensive real market knowledge on all Louisville commercial properties sized 25,000 square feet or larger.

While every effort was made to ensure the accuracy of the data presented in this report, the information is provided “as is” and neither CommercialCafe nor CommercialEdge can guarantee that the information provided is complete.