LOUISVILLE, Ky. (Aug. 8 , 2018) — The Louisville retail market recorded its first positive net absorption since 2015, with 202,370 s.f. of positive absorption in the first half of the year, according to a report from CBRE.
“We experienced strong activity in the first half of the year, especially in the grocery and big box categories,” said Robert Schwartz, senior vice president with CBRE. “We are seeing new retailers enter the market and that is always a positive sign.”
New retailers to the market include Round1 Bowling and Amusement, which leased the former Macy’s space at the Jefferson Mall, as well as Furniture Fair and discount retailer Gabe’s.
The grocery market accounted for a lot of the market’s absorption, with three new Kroger Marketplace projects adding 229,000 s.f. to the market. Big box providers such as Lowe’s and Total Wine were also active with new leases.
Overall, the Louisville market availability rate dropped to 7.1 percent.
- The Southern Indiana submarket posted the most positive net absorption with 176,932 s.f.
- Big box lease rates held steady at $7.63 PSF.
- Small shop lease rates dropped slightly to $16.94 PSF.
- Topgolf recently announced plans to open at the former Sears in the Oxmoor Mall for its first Louisville location. Pending approvals, the project will be 65,000 s.f.
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