An in-depth look at the Louisville office market. Analysis includes sales, leasing, construction, and employment.

1. Office
Outlook
An in-depth look at the
Louisville office market.
Analysis includes sales,
leasing, construction and
employment.
Louisville | Q1 2019
JLL Research

2. © 2017 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.
Q1 2019
Louisville
The first quarter started strong with over 150,000 square feet of absorption,
primarily within the suburban markets. ARGI Financial had the largest lease of
the quarter taking over 50,000 square feet in the Eastpoint submarket. The
CBD saw limited net absorption. A positive was the announcement that
Somera Road will invest $7 million into 500 W. Jefferson to upgrade the tower.
Lease conditions remain favorable to tenants and will remain that way for the
foreseeable future.
Development announcements remain steady, matching trends of the past
several years. NTS announced their fifth building at ShelbyHurst will break
ground this summer, but also announced it will be smaller than was
previously planned. Jefferson Development Group announced plans for a
Class A building in the Old Henry Crossing development. Additionally,
Campisano Capital announced plans to convert an existing 60,000-square-
foot building into a tech hub in the trendy NuLu neighborhood in the CBD.
Investment interest in Louisville remains strong as witnessed by the interest in
both 500 W. Jefferson and 400 W. Market. Capital markets firm HFF marketed
400 W. Market and despite interest from institutional investors it is unlikely to
transfer at this time.
Outlook
The strong start to 2019, driven largely by the suburban markets, is a positive
sign after a relatively slow 2018. However, the large blocks of availability
within the CBD remains a concern. Many of the prospective tenants seeking
space in Louisville are local and would be relocating from an existing space,
which will have little impact on absorption. This creates very favorable lease
terms for tenants as landlords continue to compete for users.
Fundamentals Forecast
YTD net absorption 157,120 s.f. ▲
Under construction 457,050 s.f. ▲
Total vacancy 10.3% ▼
Average asking rent (gross) $18.30 p.s.f. ▲
Concessions Rising ▲
-100,000
100,000
300,000
500,000
2014 2015 2016 2017 2018 Q1
2019
Supply and demand (s.f.) Net absorption
Deliveries
Vacancy continues downtown trend, absorption up
13.1% 12.8%
12.2%
11.3%
10.6% 10.3%
2014 2015 2016 2017 2018 Q1 2019
Total vacancy
$10.00
$15.00
$20.00
$25.00
2014 2015 2016 2017 2018 2019
Average asking rents ($/s.f.) Class A
Class B
Louisville Office Outlook
© 2019 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.
Top trends and activity
• ARGI Financial moved their HQ into a recently completed building at
2201 High Wickham Place.
• Plans were announced for the fifth building at ShelbyHurst Office &
Research Park, with construction set to begin in the summer.
• Somera Road released plans to update and renovate 500 W. Jefferson.

3. © 2017 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.
Class
Inventory
(s.f.)
Total net
absorption
(s.f.)
YTD total net
absorption
(s.f.)
YTD total net
absorption
(% of stock)
Direct
vacancy (%)
Total
vacancy (%)
Average
direct asking
rent ($ p.s.f.)
Prior 12
months
completions
(s.f.)
Under
construction
(s.f.)
CBD Totals 9,881,814 17,632 -568 0.0% 10.5% 10.6% $17.30 0 0
Hurstbourne Totals 3,314,538 78,203 26,809 0.8% 10.0% 10.3% $19.95 0 140,000
Middletown/Eastpoint Totals 1,513,721 17,818 27,096 1.8% 8.4% 8.4% $20.07 32,500 174,810
Plainview Totals 1,661,203 7,326 -28,383 -1.7% 13.1% 13.4% $15.22 0 0
River Road/Brownsboro Totals 741,866 0 34,137 4.6% 3.7% 5.2% $23.64 0 252,000
South Central Totals 1,406,623 0 6,924 0.5% 12.2% 12.2% $17.02 0 0
Southeast Totals 514,962 7,738 7,738 1.5% 9.2% 9.2% $17.88 0 0
St. Matthews Totals 1,332,933 16,882 -8,372 -0.6% 6.3% 7.1% $17.57 0 0
Suburbs Totals 8,637,951 103,347 66,583 0.8% 10.1% 10.4% $17.88 32,500 566,810
Louisville Totals 18,519,765 120,979 66,015 0.4% 10.3% 10.5% $17.57 32,500 566,810
CBD A 4,295,069 16,029 13,509 0.3% 14.8% 14.8% $18.88 0 0
Hurstbourne A 2,705,365 54,838 2,989 0.1% 9.8% 10.1% $21.27 0 140,000
Middletown/Eastpoint A 963,392 16,257 25,535 2.7% 11.5% 11.5% $20.41 32,500 174,810
Plainview A 504,033 0 0 5.7% 0.0% 0.0% $18.87 0 0
River Road/Brownsboro A 596,087 0 34,137 0.0% 3.9% 4.7% $25.23 0 252,000
Southeast A 460,734 7,738 7,738 1.7% 7.2% 7.2% $21.23 0 0
St. Matthews A 712,694 7,221 -8,021 -1.1% 4.2% 5.7% $19.80 0 0
Suburbs A 4,264,844 71,095 62,661 1.5% 9.3% 9.7% $21.23 32,500 0
Louisville A 8,559,913 87,124 76,170 0.9% 12.1% 12.3% $19.80 32,500 566,810
CBD B 5,586,745 1,603 -14,077 -0.3% 7.2% 7.3% $14.79 0 0
Hurstbourne B 609,173 23,365 23,820 3.9% 11.1% 11.1% $14.82 0 0
Middletown/Eastpoint B 550,329 1,561 1,561 0.3% 2.9% 3.1% $17.77 0 0
Plainview B 1,661,203 7,326 -28,383 -1.7% 13.1% 13.4% $15.22 0 0
River Road/Brownsboro B 145,779 0 0 0.0% 3.1% 6.9% $15.50 0 0
South Central B 1,406,623 0 6,924 0.5% 12.2% 12.2% $14.70 0 0
Southeast B 54,228 0 0 0.0% 26.1% 26.1% $15.19 0 0
St. Matthews B 620,239 9,661 -351 -0.1% 4.2% 8.6% $15.02 0 0
Suburbs B 4,373,107 32,252 3,922 0.1% 10.9% 11.2% $15.19 0 0
Louisville B 9,959,852 33,855 -10,155 -0.1% 8.8% 9.0% $15.02 0 0
Q1 2019
Statistics
Louisville Office Outlook
© 2019 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.
Class
Inventory
(s.f.)
Total net
absorption
(s.f.)
YTD total net
absorption
(s.f.)
YTD total net
absorption
(% of stock)
Direct
vacancy (%)
Total
vacancy (%)
Average
direct asking
rent ($ p.s.f.)
Prior 12
months
completions
(s.f.)
Under
construction
(s.f.)
CBD Totals 9,524,432 84,747 96,934 1.0% 10.0% 10.2% $17.42 0 0
Hurstbourne Totals 3,314,538 66,394 90,699 2.7% 10.3% 10.7% $19.78 0 140,000
Middletown/Eastpoint Totals 1,541,721 99,921 127,017 8.2% 3.8% 3.8% $18.05 0 214,810
Plainview Totals 1,661,203 35,666 7,283 0.4% 10.5% 10.8% $17.20 0 0
River Road/Brownsboro Totals 741,866 7,000 41,137 5.5% 3.5% 4.2% $23.54 0 252,000
South Central Totals 1,406,623 -73,954 -67,030 -4.8% 10.4% 17.5% $17.32 0 0
Southeast Totals 514,962 15,729 19,352 3.8% 7.7% 7.7% $18.71 0 117,000
St. Matthews Totals 1,332,933 16,059 7,687 0.6% 6.9% 7.1% $17.93 0 0
Suburbs Totals 8,665,951 135,027 199,106 2.3% 8.6% 10.0% $18.71 0 723,810
Louisville Totals 18,190,383 219,774 296,040 1.6% 9.4% 10.1% $17.93 0 723,810
CBD A 4,295,069 34,176 47,685 1.1% 14.4% 14.4% $18.87 0 0
Hurstbourne A 2,705,365 37,836 38,321 1.4% 10.3% 10.7% $21.14 0 140,000
Middletown/Eastpoint A 991,392 97,360 122,895 12.4% 4.3% 4.3% $18.16 0 214,810
Plainview A 504,033 0 0 6.9% 0.0% 0.0% $18.87 0 0
River Road/Brownsboro A 596,087 7,000 41,137 0.0% 3.5% 3.5% $25.26 0 252,000
Southeast A 460,734 15,729 19,352 4.2% 5.5% 5.5% $21.00 0 117,000
St. Matthews A 712,694 16,458 8,437 1.2% 4.0% 4.4% $19.58 0 0
Suburbs A 4,292,844 142,196 202,353 4.7% 8.0% 8.2% $21.00 0 0
Louisville A 8,587,913 176,372 250,038 2.9% 11.2% 11.3% $19.58 0 723,810
CBD B 5,229,363 50,571 49,249 0.9% 6.4% 6.8% $14.66 0 0
Hurstbourne B 609,173 28,558 52,378 8.6% 10.3% 10.3% $14.85 0 0
Middletown/Eastpoint B 550,329 2,561 4,122 0.7% 2.9% 2.9% $17.77 0 0
Plainview B 1,661,203 35,666 7,283 0.4% 10.5% 10.8% $17.20 0 0
River Road/Brownsboro B 145,779 0 0 0.0% 3.1% 6.9% $15.50 0 0
South Central B 1,406,623 -73,954 -67,030 -4.8% 10.4% 17.5% $15.62 0 0
Southeast B 54,228 0 0 0.0% 26.1% 26.1% $16.43 0 0
St. Matthews B 620,239 -399 -750 -0.1% 4.0% 10.3% $15.52 0 0
Suburbs B 4,373,107 -7,169 -3,247 -0.1% 9.2% 11.7% $16.43 0 0
Louisville B 9,602,470 43,402 46,002 0.5% 7.7% 9.0% $15.52 0 0
Class
Inventory
(s.f.)
Total net
absorption
(s.f.)
YTD total net
absorption
(s.f.)
YTD total net
absorption
(% of stock)
Direct
vacancy (%)
Total
vacancy (%)
Average
direct asking
rent ($ p.s.f.)
Prior 12
months
completions
(s.f.)
Under
construction
(s.f.)
CBD Totals 9,524,432 84,747 96,934 1.0% 10.0% 10.2% $17.42 0 0
Hurstbourne Totals 3,314,538 66,394 90,699 2.7% 10.3% 10.7% $19.78 0 140,000
Middletown/Eastpoint Totals 1,541,721 99,921 127,017 8.2% 3.8% 3.8% $18.05 0 214,810
Plainview Totals 1,484,203 35,666 7,283 0.5% 11.8% 12.1% $17.20 0 0
River Road/Brownsboro Totals 741,866 7,000 41,137 5.5% 3.5% 4.2% $23.54 0 252,000
South Central Totals 1,406,623 -73,954 -67,030 -4.8% 10.4% 17.5% $17.32 0 0
Southeast Totals 691,962 192,729 196,352 28.4% 5.7% 5.7% $18.71 0 117,000
St. Matthews Totals 1,332,933 16,059 7,687 0.6% 6.9% 7.1% $17.93 0 0
Suburbs Totals 8,488,951 135,027 199,106 2.3% 8.8% 10.2% $18.71 0 723,810
Louisville Totals 18,013,383 219,774 296,040 1.6% 9.5% 10.2% $17.93 0 723,810
CBD A 4,295,069 34,176 47,685 1.1% 14.4% 14.4% $18.87 0 0
Hurstbourne A 2,705,365 37,836 38,321 1.4% 10.3% 10.7% $21.14 0 140,000
Middletown/Eastpoint A 991,392 97,360 122,895 12.4% 4.3% 4.3% $18.16 0 214,810
Plainview A 504,033 0 0 6.9% 0.0% 0.0% $18.87 0 0
River Road/Brownsboro A 596,087 7,000 41,137 0.0% 3.5% 3.5% $25.26 0 252,000
Southeast A 460,734 15,729 19,352 4.2% 5.5% 5.5% $21.00 0 117,000
St. Matthews A 712,694 16,458 8,437 1.2% 4.0% 4.4% $19.58 0 0
Suburbs A 4,292,844 142,196 202,353 4.7% 8.0% 8.2% $21.00 0 0
Louisville A 8,587,913 176,372 250,038 2.9% 11.2% 11.3% $19.58 0 723,810
CBD B 5,229,363 50,571 49,249 0.9% 6.4% 6.8% $14.66 0 0
Hurstbourne B 609,173 28,558 52,378 8.6% 10.3% 10.3% $14.85 0 0
Middletown/Eastpoint B 550,329 2,561 4,122 0.7% 2.9% 2.9% $17.77 0 0
Plainview B 1,484,203 35,666 7,283 0.5% 11.8% 12.1% $17.20 0 0
River Road/Brownsboro B 145,779 0 0 0.0% 3.1% 6.9% $15.50 0 0
South Central B 1,406,623 -73,954 -67,030 -4.8% 10.4% 17.5% $15.62 0 0
Southeast B 231,228 177,000 177,000 76.5% 6.1% 6.1% $16.43 0 0
St. Matthews B 620,239 -399 -750 -0.1% 4.0% 10.3% $15.52 0 0
Suburbs B 4,196,107 -7,169 -3,247 -0.1% 9.6% 12.2% $16.43 0 0
Louisville B 9,425,470 43,402 46,002 0.5% 7.9% 9.2% $15.52 0 0
Class
Inventory
(s.f.)
Total net
absorption
(s.f.)
YTD total net
absorption
(s.f.)
YTD total net
absorption
(% of stock)
Direct
vacancy (%)
Total
vacancy (%)
Average
direct asking
rent ($ p.s.f.)
Prior 12
months
completions
(s.f.)
Under
construction
(s.f.)
CBD Totals 9,524,432 84,747 96,934 1.0% 10.0% 10.2% $17.42 0 0
Hurstbourne Totals 3,314,538 66,394 90,699 2.7% 10.3% 10.7% $19.78 0 140,000
Middletown/Eastpoint Totals 1,541,721 99,921 127,017 8.2% 3.8% 3.8% $18.05 0 214,810
Plainview Totals 1,484,203 35,666 7,283 0.5% 11.8% 12.1% $17.20 0 0
River Road/Brownsboro Totals 741,866 7,000 41,137 5.5% 3.5% 4.2% $23.54 0 252,000
South Central Totals 1,406,623 -73,954 -67,030 -4.8% 10.4% 17.5% $17.32 0 0
Southeast Totals 691,962 192,729 196,352 28.4% 5.7% 5.7% $18.71 0 117,000
St. Matthews Totals 1,332,933 16,059 7,687 0.6% 6.9% 7.1% $17.93 0 0
Suburbs Totals 8,488,951 135,027 199,106 2.3% 8.8% 10.2% $18.71 0 723,810
Louisville Totals 18,013,383 219,774 296,040 1.6% 9.5% 10.2% $17.93 0 723,810
CBD A 4,295,069 34,176 47,685 1.1% 14.4% 14.4% $18.87 0 0
Hurstbourne A 2,705,365 37,836 38,321 1.4% 10.3% 10.7% $21.14 0 140,000
Middletown/Eastpoint A 991,392 97,360 122,895 12.4% 4.3% 4.3% $18.16 0 214,810
Plainview A 504,033 0 0 6.9% 0.0% 0.0% $18.87 0 0
River Road/Brownsboro A 596,087 7,000 41,137 0.0% 3.5% 3.5% $25.26 0 252,000
Southeast A 637,734 192,729 196,352 30.8% 4.0% 4.0% $21.00 0 117,000
St. Matthews A 712,694 16,458 8,437 1.2% 4.0% 4.4% $19.58 0 0
Suburbs A 4,292,844 142,196 202,353 4.7% 8.0% 8.2% $21.00 0 0
Louisville A 8,587,913 176,372 250,038 2.9% 11.2% 11.3% $19.58 0 723,810
CBD B 5,229,363 50,571 49,249 0.9% 6.4% 6.8% $14.66 0 0
Hurstbourne B 609,173 28,558 52,378 8.6% 10.3% 10.3% $14.85 0 0
Middletown/Eastpoint B 550,329 2,561 4,122 0.7% 2.9% 2.9% $17.77 0 0
Plainview B 1,484,203 35,666 7,283 0.5% 11.8% 12.1% $17.20 0 0
River Road/Brownsboro B 145,779 0 0 0.0% 3.1% 6.9% $15.50 0 0
South Central B 1,406,623 -73,954 -67,030 -4.8% 10.4% 17.5% $15.62 0 0
Southeast B 54,228 0 0 0.0% 26.1% 26.1% $16.43 0 0
St. Matthews B 620,239 -399 -750 -0.1% 4.0% 10.3% $15.52 0 0
Suburbs B 4,196,107 -7,169 -3,247 -0.1% 9.6% 12.2% $16.43 0 0
Louisville B 9,425,470 43,402 46,002 0.5% 7.9% 9.2% $15.52 0 0
Class
Inventory
(s.f.)
Total net
absorption
(s.f.)
YTD total net
absorption
(s.f.)
YTD total net
absorption
(% of stock)
Direct
vacancy (%)
Total
vacancy (%)
Average
direct asking
rent ($ p.s.f.)
YTD
completions
(s.f.)
Under
construction
(s.f.)
CBD Totals 9,524,432 -31,607 72,497 0.8% 10.3% 10.5% $17.31 0 0
Hurstbourne Totals 3,454,538 65,244 80,548 2.3% 12.2% 12.4% $21.16 140,000 0
Middletown/Eastpoint Totals 1,541,721 -16,000 111,017 7.2% 4.8% 4.8% $19.66 0 214,810
Plainview Totals 1,484,203 20,587 27,870 1.9% 10.4% 10.7% $17.34 0 0
River Road/Brownsboro Totals 741,866 -3,557 37,580 5.1% 3.9% 4.7% $23.36 0 126,000
South Central Totals 1,406,623 16,775 -50,255 -3.6% 9.2% 16.3% $17.64 0 0
Southeast Totals 691,962 1,658 198,010 28.6% 5.5% 5.5% $19.84 0 117,000
St. Matthews Totals 1,332,933 5,252 12,939 1.0% 6.5% 6.7% $18.36 0 0
Suburbs Totals 8,628,951 83,049 206,760 2.4% 9.4% 10.7% $19.84 140,000 457,810
Louisville Totals 18,153,383 51,442 279,257 1.5% 9.9% 10.6% $18.36 140,000 457,810
CBD A 4,295,069 -13,878 40,977 1.0% 14.6% 14.7% $18.63 0 0
Hurstbourne A 2,845,365 65,244 28,170 1.0% 12.6% 12.8% $22.43 140,000 0
Middletown/Eastpoint A 991,392 -16,000 106,895 10.8% 5.9% 5.9% $20.17 0 214,810
Plainview A 504,033 0 0 6.3% 0.0% 0.0% $18.87 0 0
River Road/Brownsboro A 596,087 -3,557 37,580 0.0% 4.1% 4.1% $24.80 0 126,000
Southeast A 637,734 1,658 198,010 31.0% 3.7% 3.7% $22.19 0 117,000
St. Matthews A 712,694 4,322 12,759 1.8% 3.4% 3.8% $20.02 0 0
Suburbs A 4,432,844 45,687 172,645 3.9% 10.0% 10.1% $22.19 140,000 0
Louisville A 8,727,913 31,809 213,622 2.4% 12.2% 12.4% $20.02 140,000 457,810
CBD B 5,229,363 -17,729 31,520 0.6% 6.8% 7.1% $14.88 0 0
Hurstbourne B 609,173 0 52,378 8.6% 10.3% 10.3% $14.85 0 0
Middletown/Eastpoint B 550,329 0 4,122 0.7% 2.9% 2.9% $17.77 0 0
Plainview B 1,484,203 20,587 27,870 1.9% 10.4% 10.7% $17.34 0 0
River Road/Brownsboro B 145,779 0 0 0.0% 3.1% 6.9% $15.50 0 0
South Central B 1,406,623 16,775 -50,255 -3.6% 9.2% 16.3% $16.26 0 0
Southeast B 54,228 0 0 0.0% 26.1% 26.1% $16.59 0 0
St. Matthews B 620,239 930 180 0.0% 3.4% 10.1% $15.66 0 0
Suburbs B 4,196,107 37,362 34,115 0.8% 8.7% 11.4% $16.59 0 0
Louisville B 9,425,470 19,633 65,635 0.7% 7.6% 9.0% $15.66 0 0
Class
Inventory
(s.f.)
Total net
absorption
(s.f.)
YTD total net
absorption
(s.f.)
YTD total net
absorption
(% of stock)
Direct
vacancy (%)
Total
vacancy (%)
Average
direct asking
rent ($ p.s.f.)
Prior 12
months
construction
(s.f.)
Under
construction
(s.f.)
CBD Totals 9,524,432 29,517 29,517 0.3% 10.0% 10.4% $17.20 0 60,000
Hurstbourne Totals 3,454,538 2,021 2,021 0.1% 11.6% 12.3% $21.44 140,000 0
Middletown/Eastpoint Totals 1,635,780 54,230 54,230 3.3% 5.0% 7.0% $20.44 61,000 154,050
Plainview Totals 1,484,203 54,120 54,120 3.6% 7.0% 7.0% $15.30 0 0
River Road/Brownsboro Totals 741,866 710 710 0.1% 3.8% 4.6% $23.20 0 126,000
South Central Totals 1,406,623 16,522 16,522 1.2% 8.0% 15.1% $17.64 0 0
Southeast Totals 691,962 0 0 0.0% 5.5% 5.5% $19.91 0 117,000
St. Matthews Totals 1,332,933 0 0 0.0% 6.5% 6.7% $18.30 0 0
Suburbs Totals 8,723,010 127,603 127,603 1.5% 8.4% 10.2% $19.91 201,000 397,050
Louisville Totals 18,247,442 157,120 157,120 0.9% 9.2% 10.3% $18.30 201,000 457,050
CBD A 4,295,069 36,326 36,326 0.8% 14.1% 14.3% $18.51 0 60,000
Hurstbourne A 2,845,365 -14,087 -14,087 -0.5% 12.5% 13.3% $22.43 140,000 0
Middletown/Eastpoint A 1,085,451 54,230 54,230 5.0% 6.0% 9.0% $21.10 61,000 154,050
Plainview A 504,033 0 0 0.1% 0.0% 0.0% $18.87 0 0
River Road/Brownsboro A 596,087 710 710 0.0% 4.0% 4.0% $24.66 0 126,000
Southeast A 637,734 0 0 0.0% 3.7% 3.7% $22.28 0 117,000
St. Matthews A 712,694 0 0 0.0% 3.4% 3.8% $20.05 0 0
Suburbs A 4,526,903 40,853 40,853 0.9% 9.8% 11.1% $22.28 201,000 0
Louisville A 8,821,972 77,179 77,179 0.9% 11.9% 12.6% $20.05 201,000 457,050
CBD B 5,229,363 -6,809 -6,809 -0.1% 6.6% 7.2% $14.87 0 0
Hurstbourne B 609,173 16,108 16,108 2.6% 7.7% 7.7% $14.90 0 0
Middletown/Eastpoint B 550,329 0 0 0.0% 2.9% 2.9% $17.77 0 0
Plainview B 1,484,203 54,120 54,120 3.6% 7.0% 7.0% $15.30 0 0
River Road/Brownsboro B 145,779 0 0 0.0% 3.1% 6.9% $15.50 0 0
South Central B 1,406,623 16,522 16,522 1.2% 8.0% 15.1% $16.26 0 0
Southeast B 54,228 0 0 0.0% 26.1% 26.1% $15.65 0 0
St. Matthews B 620,239 0 0 0.0% 3.4% 10.1% $15.18 0 0
Suburbs B 4,196,107 86,750 86,750 2.1% 6.8% 9.3% $15.65 0 0
Louisville B 9,425,470 79,941 79,941 0.8% 6.7% 8.2% $15.18 0 0

4. © 2017 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.
$58,975,000
5
$169
7.5-8.5%
6.0%
94.0%
7.5-8.5%
7.5-8.5%
Notable sales transactions past 12 months
RBA (s.f.) $ p.s.f. Sale date
12501 Lakefront UBS 177,000 $30,000,000 $169 Aug-18
Executive Park Priam Capital Poe Company 109,496 $86 Apr-18
Triad East Linn Station 001
Triad East
Holdings
96,020 $5,859,000 $61 Apr-18
11001 Bluegrass SF Partners Commonwealth Business Center 126,000 $10,000,000 $79 Feb-18
$9,400,000
Core Class A CBD
Core Class A suburban
Average Class A price p.s.f.
Sales activity by building classAt a glance
Past 12 months sales volume
Number of transactions
Building Buyer
Average Class A cap rate
Sales volume $ by submarket
Urban sales volume as % of
total
Suburban sales volume as % of
total
Cap rate range Transactions details
Top sellers (s.f.)Top buyers (s.f.)
Sale price ($)Seller
Mid-America Farm Credit
$3,725,000
$9,400,000
$15,850,000
$30,000,000
(blank)
CBD
St. Matthews
Plainview
Southeast
$30,000,000 $28,975,000
$58,975,000
$0
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
A B Total
Q1 2019
Sales
Louisville Office Outlook
This report analyzes sales from the past 12 months
© 2019 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.
$88,875,000
7
$108
7.5-8.5%
37.0%
63.0%
7.5-8.5%
7.5-8.5%
Notable sales transactions past 12 months
RBA (s.f.) $ p.s.f. Sale date
500 W. Jefferson Optima 500 556,042 $25,500,000 $46 Dec-18
Kaden Tower In-Rel Properties Kaden Companies 115,530 $91 Dec-18
30,000 $3,850,000 $128 Dec-18
12501 Lakefront UBS 177,000 $30,000,000 $169 Aug-18
Executive Park Priam Capital Poe Company 109,496 $9,400,000 $86 Apr-18
Triad East Linn Station 001 96,020 $5,859,000 $61 Apr-18
$10,500,000
Mulloy Properties
Mid-America Farm Credit
111 W. Washington Main Street Realty
Triad East Holdings
Core Class A CBD
Core Class A suburban
Transactions details
Top sellers (s.f.)Top buyers (s.f.)
Sale price ($)
Average Class A price p.s.f.
Sales activity by building classAt a glance
Past 12 months sales volume
Number of transactions
Average Class A cap rate
Sales volume $ by submarket
Urban sales volume as % of
total
Suburban sales volume as % of
total
Cap rate range
Seller
Somera Road
Building Buyer
$5,850,000
$19,900,000
$30,000,000
$33,125,000
Plainview
St. Matthews
Southeast
CBD
$55,500,000
$33,375,000
$88,875,000
$0
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
$80,000,000
$90,000,000
$100,000,000
A B Total
$88,875,000
7
$108
7.5-8.5%
37.0%
63.0%
7.5-8.5%
7.5-8.5%
Notable sales transactions past 12 months
RBA (s.f.) $ p.s.f. Sale date
500 W. Jefferson Optima 500 556,042 $25,500,000 $46 Dec-18
Kaden Tower In-Rel Properties Kaden Companies 115,530 $91 Dec-18
30,000 $3,850,000 $128 Dec-18
12501 Lakefront UBS 177,000 $30,000,000 $169 Aug-18
Executive Park Priam Capital Poe Company 109,496 $9,400,000 $86 Apr-18
Triad East Linn Station 001 96,020 $5,859,000 $61 Apr-18
$10,500,000
Mulloy Properties
Mid-America Farm Credit
111 W. Washington Main Street Realty
Triad East Holdings
Core Class A CBD
Core Class A suburban
Transactions details
Top sellers (s.f.)Top buyers (s.f.)
Sale price ($)
Average Class A price p.s.f.
Sales activity by building classAt a glance
Past 12 months sales volume
Number of transactions
Average Class A cap rate
Past 12 months sales volume $ by submarket
Urban sales volume as % of
total
Suburban sales volume as % of
total
Cap rate range
Seller
Somera Road
Building Buyer
$5,850,000
$19,900,000
$30,000,000
$33,125,000
Plainview
St. Matthews
Southeast
CBD
$55,500,000
$33,375,000
$88,875,000
$0
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
$80,000,000
$90,000,000
$100,000,000
A B Total
48%
15%
10%
9%
8%
7%
Somera Road Mid-America Farm Credit
In-Rel Properties Priam Capital
Linn Station 001 Taurus Asset Management
Mulloy Properties
48%
15%
10%
9%
8%
7%
Optima 500 UBS
Kaden Companies Poe Company
Triad East Holdings 620 Building
Main Street Realty

5. © 2017 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.
Total available at delivery (%) 39.8%
Total leased at delivery (%) 60.2%
Average floor plate (s.f.) 27,627
Average number of stories 4
Average asking rent ($ p.s.f.) $26.00
Notable deliveries past 12 months
Building Submarket RBA (s.f.) Delivered
Leased at
delivery (%)
805 N. Whittington Parkway Hurstbourne 140,000 Q4 2018 50.0%
2201 High Wickham Place Middletown/Eastpoint 61,000 Q1 2019 84.0%
Total pre-leased (%) 10.7%
Total under construction (s.f.) 397,050
Total under renovation (s.f.) 60,000
Average floor plate (s.f.) 19,645
Average asking rent ($ p.s.f.) $10.75
Notable projects under construction or announced
Building RBA (s.f.)
Estimated
delivery
Pre-leased (%)
4701 Olympia Park Plaza 126,000 Q4 2019 0.0%
1801 Tucker Station Road 45,000 Q3 2019 0.0%
13906 Promenade Green Way 66,050 Q2 2019 0.0%
552 E. Market Street 60,000 Q2 2020 0.0%
2500 Eastpoint Parkway 48,000 Q2 2019 50.0%
1801 Tucker Station Road 45,000 Q3 2019 0.0%
1701 English Station Road 40,000 Q2 2019 100.0%
Historical completions
Deliveries
At a glance
201,000
12- month deliveries (s.f.)
SpeculativeSchulte Design and Construction
Spec/BTSOwner/developer
457,050
Under construction/renovation (s.f.)
Middletown/Eastpoint V-Soft
Middletown/Eastpoint Linak
BTSNTS Development
River Road/Brownsboro Fenley Real Estate Speculative
Owner/developer Spec or BTSSubmarket
Under construction/renovation
At a glance
BTS
Upcoming deliveries by year (s.f., excludes YTD completions)
Campisano Capital
BTS
Speculative
Southeast Hollenbach Oakley BTS
CBD
Hollenbach OakleySoutheast
Middletown/Eastpoint Schulte Design and Construction Speculative
BTS
325,050
132,000
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
2019 2020
260,000
248,000
328,400
192,500
140,000
61,000
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
2014 2015 2016 2017 2018 2019
Q1 2019
Construction
Louisville Office Outlook
This report analyzes all office developments under construction and new deliveries in the last 12 months > 30,000 s.f.
© 2019 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.

6. © 2017 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.
Q1 2019
Leasing
Louisville Office Outlook
2
Address: 1930 Bishop Lane
Square Feet: 120,000
Tenant: Norton
Type: Renewal
2
1
Address: 101 S. Fifth Street
Square Feet: 9,619
Tenant: Insight Global
Type: New Lease
3
3
Address: 805 N. Whittington
Square Feet: 16,000
Tenant: First Data
Type: New Lease
1
© 2019 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.

7. © 2017 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.
-1.0%
-0.3%
0.4%
1.1%
1.8%
2.5%
3.2%
3.9%
2015 2016 2017 2018
Louisville U.S.
22%
15%
13%12%
11%
10%
7%
Trade, Transportation & Utilities
Educational & Health Services
Professional & Business Services
Manufacturing
Government
Leisure & Hospitality
Financial Activities
Mining, Logging & Construction
Other Services
Information
Q1 2019
Employment
Louisville Office Outlook
3.8%U.S. unemployment
1.7%U.S. 12-month job growth
4.0%Louisville unemployment
1.0%Louisville 12-month job growth
4.1%Kentucky unemployment
1.1%Kentucky 12-month job growth
-2,600
-2,200
-500
-400
100
600
900
2,100
2,600
6,300
-4,500 -2,500 -500 1,500 3,500 5,500 7,500
Leisure & Hospitality
Other Services
Financial Activities
Information
Professional & Business Services
Government
Trade, Transportation & Utilities
Manufacturing
Mining, Logging & Construction
Educational & Health Services
-6.0
-1.0
4.0
9.0
2014 2015 2016 2017 2018
Professional & Business Services Information
Government Financial Activities
0%
4%
8%
12%
400,000
500,000
600,000
700,000
800,000
2014 2015 2016 2017 2018 2019
Employment Unemployment
Employment vs. unemployment rate
Employment by industry
Job growth (12-month change)
* Represents 12-month change in employment. All charts represent the latest economic data available from the Bureau of Labor Statistics as of October 2018.
© 2019 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof
Job growth*
Job growth by sector*Historical employment
Employment by industry Office employment*

8. Rick Ashton, CCIM
Vice President
+1 502 394 2521
rick.ashton@am.jll.com
Jeff Dreher, SIOR
Vice President
+1 502 394 2519
jeff.dreher@am.jll.com
Pat Richardson, CCIM
Vice President
+1 502 394 2515
pat.richardson@am.jll.com
Yandell Wood, SIOR
Vice President
+1 502 394 2518
yandell.wood@am.jll.com
Doug Owen, SIOR
Senior Vice President
+1 502 394 2516
doug.owen@am.jll.com
David Wood, SIOR
Vice President
+1 502 394 2510
david.wood@am.jll.com
Contact
© 2019 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.
About JLL
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+1 502 394 2512
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Research Analyst
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