LOUISVILLE, Ky. (Oct. 13, 2016) – The Louisville industrial market remains strong with the sixth consecutive quarter of positive absorption and asking rents ticking up $3.43 from $0.06, according to CBRE’s Industrial MarketView.
Overall, the market gained 372,683 s.f. of positive net absorption. However, several new speculative buildings delivered in the third quarter and a large area manufacturing plant closed, driving vacancy up 90 basis points to 5.8 percent. Three other speculative buildings delivered pre-leased, contributing more than 827,000 s.f. of positive net absorption.
“The industrial market continues to be a highlight of the Louisville commercial real estate market,” said Tom Sims, senior vice president in CBRE’s Louisville office. “Demand is still very high and speculative projects that are delivering now have a lot of activity and interest. Despite an active speculative pipeline, we believe the market will absorb these projects in the coming quarters.”
Other Q3 highlights of the report include:
• Four new construction projects began, including one speculative and three built-to-suits, totaling less than 1.5M s.f.
• The largest lease was to Arvato Digital Services for 645,840 s.f. at 2500 Export Drive, which is currently under construction.
• UPS broke ground on the expansion of the Centennial Hub ground sorting facility in August. The expansion will be more than 1M s.f. with an investment in excess of $300M.
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