LOUISVILLE, Ky. (July 11 , 2018) — The Louisville industrial market posted its highest quarter of net absorption in market history, with a total of 2.65 million s.f. of positive net absorption in the second quarter, according to a report from CBRE.
“To put that absorption number in perspective, annual industrial absorption totaled 2.5 million square feet in 2017, and that was our fourth-largest year ever,” said Kevin Grove, senior vice president with CBRE. “We just eclipsed that total in one quarter. The amount of activity we are seeing right now is unprecedented.”
This activity comes on the heels of a strong first quarter, which saw 1.65 million s.f. of positive absorption, bringing year-to-date totals to 4.3 million s.f. of absorption. All of this activity has driven the vacancy down, which now sits at 6.2 percent, well below the 7.2 percent that ended 2017.
Lease rates saw a boost as well and are now at $3.69 per s.f.
Much of this activity was achieved through several new leases, the sale of a 455,000-s.f. manufacturing facility, and the completion of a 1,462,589-s.f. build-to-suit distribution warehouse in the Southside/Airport submarket.
Investment sales in the Louisville market have been strong as well, with $82 million worth of sales taking place in the second quarter.
- The availability rate dropped to 8.1 percent.
- GLP purchased the 592,800 s.f. distribution building at 250 Hilton Drive in the Southern Indiana submarket for $38.4 million.
- The largest lease of the quarter was a 305,760-s.f. lease by GE Appliances, a Haier Company, in the Southern Indiana submarket.
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