Market sees seventh consecutive quarter of positive absorption
LOUISVILLE, Ky. (Jan. 17, 2017) – The Louisville industrial market remains strong with the seventh consecutive quarter of positive absorption, ending the year with 1,974,728 s.f. of total net absorption, according to CBRE’s Industrial MarketView.
Overall, the market gained 463,977 square feet of positive net absorption in the fourth quarter. The availability rate remained flat at 7.8 percent.
“It was an incredibly strong year in the Louisville industrial market and we predict that will continue in 2017,” said Tom Sims, senior vice president in CBRE’s Louisville office. “We are still seeing lots of demand for new product and the construction pipeline remains healthy.”
While absorption continues to trend positive, the vacancy rate did tick up for the second quarter in a row to 6.4 percent. This is mainly due to the closure of a manufacturing plant in the Southside/Airport submarket and the addition of a new speculative building in the Southern Indiana submarket. To help offset this, another speculative building in the market delivered to the market 100 percent leased at 645,840 square feet. Lease rates tracked down slightly from $3.43 per sq. ft. to $3.40 per sq. ft.
Other Q4 highlights of the report include:
• The amount of industrial space under construction dipped to 4.6 million square feet.
• The largest lease was to Haier US Appliances for 611,000 sq. ft. at 649 Omega Parkway in Bullitt County in October.
• The 455,000-square-foot former Pillsbury manufacturing plant in New Albany, Ind. was sold in November to New Mill Capital Holdings and Tiger Capital Group.
To read the entire report, please go here.