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 | Q4 2018
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.
Q4 2018
Louisville
Leasing slowed in the CBD in the fourth quarter as there was negative
absorption, but activity continued in the suburbs, with the Hurstbourne
submarket having the highest absorption. In the CBD there remain multiple
large blocks of contiguous space available, with the expectation that several
more will likely come online in 2019, as users reevaluate their options and
continue to try to shrink their footprints. Lease conditions in the downtown
market remain favorable for tenants and are expected to stay that way into
2019.
Development announcements slowed in the fourth quarter, as builders wait
for current product to be absorbed. Construction has started on the 126,000-
square-foot Class A building at 4701 Olympia Park Plaza. Additionally, the 805
Building at 805 N. Whittington Parkway was completed, with 50 percent being
occupied by BrightSpring Health, formerly known as ResCare.
The deed for the troubled downtown 500 W. Jefferson building was
purchased by Somera Road. The expectation is the buyer will spend the
capital needed to update the asset so it can compete within the downtown
market. In the suburban market, the Kaden Tower was purchased by In-Rel
Properties for $10.5 million, showing continued demand for available office
product.
Outlook
The Louisville office market ended the year with net absorption up
significantly year-over-year, and total vacancy down over one percentage
point. Despite these trends, the market remains somewhat slow as large
contiguous blocks remain available throughout the market, particularly in the
CBD. There is also an expectation that through re-stacking and more effective
space use, several more blocks will open within the CBD in the coming
months. This will likely make lease terms even more favorable towards
tenants, as landlords will need to compete harder than ever for large users.
Fundamentals Forecast
YTD net absorption 279,257 s.f. ▲
Under construction 457,810 s.f. ▲
Total vacancy 10.6% ▼
Average asking rent (gross) $18.36 p.s.f. ▲
Concessions Rising ▲
-100,000
100,000
300,000
500,000
2014 2015 2016 2017 2018
Supply and demand (s.f.) Net absorption
Deliveries
Vacancy decreases, but large blocks remain available
13.1% 12.8%
12.2%
11.3%
10.6%
2014 2015 2016 2017 2018
Total vacancy
$10.00
$15.00
$20.00
$25.00
2014 2015 2016 2017 2018
Average asking rents ($/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
• 500 W. Jefferson officially transferred to New York based Somera Road.
• In-Rel Properties increased their footprint in Louisville with the purchase
of the 16-story Kaden Tower.
• Online retailer Chewy, Inc. announced plans to occupy 25,000 square
feet at 3621 Fern Valley Road.

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% $15.02 0 0
Q4 2018
Statistics
Louisville Office Outlook
© 2019 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.
Class
Inventory
(s.f.)
Total net
absorption
(s.f.)
YTD total net
absorption
(s.f.)
YTD total net
absorption
(% of stock)
Direct
vacancy (%)
Total
vacancy (%)
Average
direct asking
rent ($ 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

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
Q4 2018
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.
$99,508,974
8
$108
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
500 W. Jefferson Optima 500 556,042 $30,000,000 $47 Dec-18
Kaden Tower In-Rel Properties Kaden Companies 115,530 $91 Dec-18
30,000 $30,000,000 $130 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
11001 Bluegrass SF Partners Commonwealth Business Center 126,000 $10,000,000 $79 Feb-18
Mulloy Properties
Mid-America Farm Credit
111 W. Washington Main Street Realty
Triad East Holdings
$10,500,000
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
Transactions details
Average Class A cap rate
Sales volume $ by submarket
Urban sales volume as % of
total
Suburban sales volume as % of
total
Cap rate range
Top sellers (s.f.)Top buyers (s.f.)
Sale price ($)Seller
Somera Road
Building Buyer
$15,850,000
$19,900,000
$30,000,000
$33,758,974
Plainview
St. Matthews
Southeast
CBD
$56,133,974
$43,375,000
$99,508,974
$0
$20,000,000
$40,000,000
$60,000,000
$80,000,000
$100,000,000
$120,000,000
A B Total
43%
14%
10%
9%
8%
7%
6%
Somera Road Mid-America Farm Credit
SF Partners In-Rel Properties
Priam Capital Linn Station 001
Taurus Asset Management Mulloy Properties
43%
14%
10%
9%
8%
7%
6%
Optima 500 UBS
Commonwealth Business Center 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.
This report analyzes all office developments under construction and new deliveries
Total available at delivery (%) 23.0%
Total leased at delivery (%) 77.0%
Average floor plate (s.f.) 32,778
Average number of stories 2
Average asking rent ($ p.s.f.) $21.50
Notable deliveries year-to-date
Building Submarket RBA (s.f.) Delivered
Leased at
delivery (%)
2403 Terra Crossing Blvd
Middletown
/Eastpoint
92,500 Q1 2017 100.0%
Old Henry Crossing #5
Middletown
/Eastpoint
35,000 Q1 2017 87.7%
13410 Eastpoint Centre Dr
Middletown
/Eastpoint
The Schroering
Company
32,500 Q2 2017 0.0%
Total pre-leased (%) 0.0%
Total under construction (s.f.) 100,000
Total under renovation (s.f.) -
Average floor plate (s.f.) 25,000
Average asking rent ($ p.s.f.) $25.00
Notable projects under construction
Building RBA (s.f.)
Estimated
delivery
Pre-leased
(%)
5000 Chamberlain Lane 100,000 Q2 2018 0.0%River Road/Brownsboro McMahan Group Speculative
Owner/developer Spec or BTSSubmarket
Under construction/renovation
100,000
Under construction/renovation
(s.f.)
At a glance
Upcoming deliveries by year (s.f., excludes YTD completions)
Spec/BTSOwner/developer
BTSThortons, Inc.
SpeculativeTerra Crossing, LLC
Speculative
Historical completions
Deliveries
At a glance
160,000
YTD deliveries (s.f.)
32,500
100,000
0
20,000
40,000
60,000
80,000
100,000
120,000
2017 2018
175,000
260,000
248,000
328,400
127,500
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
2013 2014 2015 2016 2017
Q4 2018
Construction
Louisville Office Outlook
This report analyzes all office developments under construction and new deliveries
Total available at delivery (%) 23.0%
Total leased at delivery (%) 77.0%
Average floor plate (s.f.) 32,778
Average number of stories 2
Average asking rent ($ p.s.f.) $21.50
Notable deliveries year-to-date
Building Submarket RBA (s.f.) Delivered
Leased at
delivery (%)
2403 Terra Crossing Blvd
Middletown/E
astpoint
92,500 Q1 2017 100.0%
Old Henry Crossing #5
Middletown/E
astpoint
35,000 Q1 2017 87.7%
13410 Eastpoint Centre Dr
Middletown/E
astpoint
The Schroering
Company
32,500 Q2 2017 65.0%
Total pre-leased (%) 19.1%
Total under construction (s.f.) 366,810
Total under renovation (s.f.) -
Average floor plate (s.f.) 16,818
Average asking rent ($ p.s.f.) $25.00
Notable projects under construction
Building RBA (s.f.)
Estimated
delivery
Pre-leased (%)
N. Whittington Parkway 140,000 Q3 2018 50.0%
5000 Chamberlain Lane 100,000 Q2 2018 0.0%
13906 Promenade Green Way 66,050 Q2 2018 0.0%
2201 High Wickham Place 60,760 Q2 2018 0.0%
Historical completions
Deliveries
At a glance
160,000
YTD deliveries (s.f.)
SpeculativeTerra Crossing, LLC
Speculative
Spec/BTSOwner/developer
BTSThorntons
Hurstbourne University of Louisville BTS
Owner/developer Spec or BTSSubmarket
Under construction/renovation
366,810
Under construction/renovation (s.f.)
At a glance
Upcoming deliveries by year (s.f., excludes YTD completions)
Oreo 3
Speculative
SpeculativeMiddletown/Eastpoint
McMahan GroupRiver Road/Brownsboro
Middletown/Eastpoint Oreo 3 Speculative
366,810
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
2018
175,000
260,000
248,000
328,400
160,000
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
2013 2014 2015 2016 2017
This report analyzes all office developments under construction and new deliveries
Total available at delivery (%) 23.0%
Total leased at delivery (%) 77.0%
Average floor plate (s.f.) 32,778
Average number of stories 2
Average asking rent ($ p.s.f.) $21.50
Notable deliveries year-to-date
Building Submarket RBA (s.f.) Delivered
Leased at
delivery (%)
2403 Terra Crossing Blvd Middletown/Eastpoint 92,500 Q1 2017 100.0%
Old Henry Crossing #5 Middletown/Eastpoint 35,000 Q1 2017 87.7%
13410 Eastpoint Centre Dr Middletown/Eastpoint The Schroering Company 32,500 Q2 2017 65.0%
Total pre-leased (%) 19.1%
Total under construction (s.f.) 366,810
Total under renovation (s.f.) -
Average floor plate (s.f.) 16,818
Average asking rent ($ p.s.f.) $25.00
Notable projects under construction
Building RBA (s.f.)
Estimated
delivery
Pre-leased (%)
N. Whittington Parkway 140,000 Q3 2018 50.0%
5000 Chamberlain Lane 100,000 Q2 2018 0.0%
13906 Promenade Green Way 66,050 Q2 2018 0.0%
2201 High Wickham Place 60,760 Q2 2018 0.0%Schulte Design and Construction
Speculative
SpeculativeMiddletown/Eastpoint
McMahan GroupRiver Road/Brownsboro
Middletown/Eastpoint Schulte Design and Construction Speculative
Hurstbourne NTS Development Company BTS
Owner/developer Spec or BTSSubmarket
Under construction/renovation
366,810
Under construction/renovation (s.f.)
At a glance
Upcoming deliveries by year (s.f., excludes YTD completions)
Spec/BTSOwner/developer
BTSThorntons
SpeculativeTerra Crossing, LLC
Speculative
Historical completions
Deliveries
At a glance
160,000
YTD deliveries (s.f.)
140,000
226,810
0
50,000
100,000
150,000
200,000
250,000
BTS Speculative
2018
175,000
260,000
248,000
328,400
160,000
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
2013 2014 2015 2016 2017
This report analyzes all office developments under construction and new deliveries
Total available at delivery (%) 23.0%
Total leased at delivery (%) 77.0%
Average floor plate (s.f.) 32,778
Average number of stories 2
Average asking rent ($ p.s.f.) $21.50
Notable deliveries year-to-date
Building Submarket RBA (s.f.) Delivered
Leased at
delivery (%)
2403 Terra Crossing Blvd Middletown/Eastpoint 92,500 Q1 2017 100.0%
Old Henry Crossing #5 Middletown/Eastpoint 35,000 Q1 2017 87.7%
13410 Eastpoint Centre Dr Middletown/Eastpoint The Schroering Company 32,500 Q2 2017 65.0%
Total pre-leased (%) 19.1%
Total under construction (s.f.) 366,810
Total under renovation (s.f.) -
Average floor plate (s.f.) 16,818
Average asking rent ($ p.s.f.) $25.00
Notable projects under construction
Building RBA (s.f.)
Estimated
delivery
Pre-leased (%)
N. Hurstbourne Parkway 140,000 Q3 2018 50.0%
5000 Chamberlain Lane 100,000 Q2 2018 0.0%
13906 Promenade Green Way 66,050 Q2 2018 0.0%
2201 High Wickham Place 60,760 Q2 2018 0.0%
Historical completions
Deliveries
At a glance
160,000
YTD deliveries (s.f.)
SpeculativeTerra Crossing, LLC
Speculative
Spec/BTSOwner/developer
BTSThorntons
Hurstbourne NTS Development Company BTS
Owner/developer Spec or BTSSubmarket
Under construction/renovation
366,810
Under construction/renovation (s.f.)
At a glance
Upcoming deliveries by year (s.f., excludes YTD completions)
Schulte Design and Construction
Speculative
SpeculativeMiddletown/Eastpoint
McMahan GroupRiver Road/Brownsboro
Middletown/Eastpoint Schulte Design and Construction Speculative
140,000
226,810
0
50,000
100,000
150,000
200,000
250,000
BTS Speculative
2018
175,000
260,000
248,000
328,400
160,000
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
2013 2014 2015 2016 2017
This report analyzes all office developments under construction and new deliveries in the last 12 months > 30,000 s.f.
Total available at delivery (%) 100.0%
Total leased at delivery (%) 0.0%
Average floor plate (s.f.) 32,500
Average number of stories 1
Average asking rent ($ p.s.f.) $18.00
Notable deliveries past 12 months
Building Submarket RBA (s.f.) Delivered
Leased at
delivery (%)
13410 Eastpoint Centre Dr Middletown/Eastpoint 32,500 Q2 2017 65.0%
Total pre-leased (%) 11.3%
Total under construction (s.f.) 618,810
Total under renovation (s.f.) -
Average floor plate (s.f.) 21,712
Average asking rent ($ p.s.f.) $25.00
Notable projects under construction
Building RBA (s.f.)
Estimated
delivery
Pre-leased (%)
805 N. Whittington Parkway 140,000 Q3 2018 50.0%
4701 Olympia Park Plaza 126,000 Q4 2018 0.0%
4701 Olympia Park Plaza 126,000 Q4 2018 0.0%
5000 Chamberlain Lane 100,000 Q2 2018 0.0%
13906 Promenade Green Way 66,050 Q2 2018 0.0%
2201 High Wickham Place 60,760 Q2 2018 0.0%Middletown/Eastpoint Schulte Design and Construction Speculative
Historical completions
Deliveries
At a glance
32,500
12- month deliveries (s.f.)
Spec/BTSOwner/developer
SpeculativeThe Schroering Company
Hurstbourne NTS Development Company BTS
Owner/developer Spec or BTSSubmarket
Under construction/renovation
618,810
Under construction/renovation (s.f.)
At a glance
Upcoming deliveries by year (s.f., excludes YTD completions)
McMahan Group
Speculative
Speculative
Middletown/Eastpoint Schulte Design and Construction Speculative
River Road/Brownsboro
Fenley Real EstateMiddletown/Eastpoint
Middletown/Eastpoint Fenley Real Estate Speculative
140,000
478,810
0
100,000
200,000
300,000
400,000
500,000
600,000
BTS Speculative
2018
175,000
260,000
248,000
328,400
192,500
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
2013 2014 2015 2016 2017
This report analyzes all office developments under construction and new deliveries in the last 12 months > 30,000 s.f.
Total available at delivery (%) 100.0%
Total leased at delivery (%) 0.0%
Average floor plate (s.f.) 32,500
Average number of stories 1
Average asking rent ($ p.s.f.) $18.00
Notable deliveries past 12 months
Building Submarket RBA (s.f.) Delivered
Leased at
delivery (%)
13410 Eastpoint Centre Dr Middletown/Eastpoint 32,500 Q2 2017 65.0%
Total pre-leased (%) 11.3%
Total under construction (s.f.) 618,810
Total under renovation (s.f.) -
Average floor plate (s.f.) 21,712
Average asking rent ($ p.s.f.) $25.00
Notable projects under construction
Building RBA (s.f.)
Estimated
delivery
Pre-leased (%)
805 N. Whittington Parkway 140,000 Q3 2018 50.0%
4701 Olympia Park Plaza 126,000 Q2 2019 0.0%
4701 Olympia Park Plaza 126,000 Q2 2019 0.0%
5000 Chamberlain Lane 100,000 Q2 2018 0.0%
13906 Promenade Green Way 66,050 Q2 2018 0.0%
2201 High Wickham Place 60,760 Q2 2018 0.0%
Upcoming deliveries by year (s.f., excludes YTD completions)
McMahan Group
Speculative
Speculative
Middletown/Eastpoint Schulte Design and Construction Speculative
River Road/Brownsboro
Fenley Real EstateMiddletown/Eastpoint
Middletown/Eastpoint Fenley Real Estate Speculative
SpeculativeThe Schroering Company
Hurstbourne NTS Development Company BTS
Owner/developer Spec or BTSSubmarket
Under construction/renovation
618,810
Under construction/renovation (s.f.)
At a glance
Middletown/Eastpoint Schulte Design and Construction Speculative
Historical completions
Deliveries
At a glance
32,500
12- month deliveries (s.f.)
Spec/BTSOwner/developer
140,000
226,810
252,000
0
50,000
100,000
150,000
200,000
250,000
300,000
BTS Speculative Speculative
2018 2019
175,000
260,000
248,000
328,400
192,500
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
2013 2014 2015 2016 2017
This report analyzes all office developments under construction and new deliveries in the last 12 months > 30,000 s.f.
Total available at delivery (%) 100.0%
Total leased at delivery (%) 0.0%
Average floor plate (s.f.) 32,500
Average number of stories 1
Average asking rent ($ p.s.f.) $18.00
Notable deliveries past 12 months
Building Submarket RBA (s.f.) Delivered
Leased at
delivery (%)
13410 Eastpoint Centre Dr Middletown/Eastpoint 32,500 Q2 2017 65.0%
Total pre-leased (%) 11.3%
Total under construction (s.f.) 618,810
Total under renovation (s.f.) -
Average floor plate (s.f.) 21,712
Average asking rent ($ p.s.f.) $25.00
Notable projects under construction
Building RBA (s.f.)
Estimated
delivery
Pre-leased (%)
805 N. Whittington Parkway 140,000 Q3 2018 50.0%
4701 Olympia Park Plaza 126,000 Q2 2019 0.0%
4701 Olympia Park Plaza 126,000 Q2 2019 0.0%
5000 Chamberlain Lane 100,000 Q2 2018 0.0%
13906 Promenade Green Way 66,050 Q2 2019 0.0%
2201 High Wickham Place 60,760 Q2 2019 0.0%Middletown/Eastpoint Schulte Design and Construction Speculative
Historical completions
Deliveries
At a glance
32,500
12- month deliveries (s.f.)
Spec/BTSOwner/developer
SpeculativeThe Schroering Company
Hurstbourne NTS Development Company BTS
Owner/developer Spec or BTSSubmarket
Under construction/renovation
618,810
Under construction/renovation (s.f.)
At a glance
Upcoming deliveries by year (s.f., excludes YTD completions)
McMahan Group
Speculative
Speculative
Middletown/Eastpoint Schulte Design and Construction Speculative
River Road/Brownsboro
Fenley Real EstateRiver Road/Brownsboro
River Road/Brownsboro Fenley Real Estate Speculative
140,000
226,810
252,000
0
50,000
100,000
150,000
200,000
250,000
300,000
BTS Speculative Speculative
2018 2019
175,000
260,000
248,000
328,400
192,500
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
2013 2014 2015 2016 2017
This report analyzes all office developments under construction and new deliveries in the last 12 months > 30,000 s.f.
© 2019 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.
Total available at delivery (%) 50.0%
Total leased at delivery (%) 50.0%
Average floor plate (s.f.) 35,000
Average number of stories 4
Average asking rent ($ p.s.f.) $27.00
Notable deliveries past 12 months
Building Submarket RBA (s.f.) Delivered
Leased at
delivery (%)
805 N. Whittington Parkway Hurstbourne 140,000 Q4 2018 50.0%
Total pre-leased (%) 10.7%
Total under construction (s.f.) 457,810
Total under renovation (s.f.) -
Average floor plate (s.f.) 20,396
Average asking rent ($ p.s.f.) $13.60
Notable projects under construction or announced
Building RBA (s.f.)
Estimated
delivery
Pre-leased (%)
4701 Olympia Park Plaza 126,000 Q4 2019 0.0%
1801 Tucker Station Road 72,000 Q4 2020 0.0%
13906 Promenade Green Way 66,050 Q2 2019 0.0%
2201 High Wickham Place 60,760 Q2 2019 0.0%
2500 Eastpoint Parkway 48,000 Q2 2019 50.0%
1801 Tucker Station Road Bldg
1
45,000 Q3 2019 0.0%
1701 English Station Road 40,000 Q2 2019 100.0%Middletown/Eastpoint Linak BTS
Upcoming deliveries by year (s.f., excludes YTD completions)
Schulte Design and Construction
BTS
Speculative
Southeast Hollenbach Oakley BTS
Middletown/Eastpoint
Hollenbach OakleySoutheast
Middletown/Eastpoint Schulte Design and Construction Speculative
Middletown/Eastpoint V-Soft BTS
BTSNTS Development
River Road/Brownsboro NTS Development Company Speculative
Owner/developer Spec or BTSSubmarket
Under construction/renovation
457,810
Under construction/renovation (s.f.)
At a glance
Historical completions
Deliveries
At a glance
140,000
12- month deliveries (s.f.)
Spec/BTSOwner/developer
133,000
378,810
72,000
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
BTS Speculative BTS
2019 2020
175,000
260,000
248,000
328,400
192,500
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
2013 2014 2015 2016 2017
Total available at delivery (%) 50.0%
Total leased at delivery (%) 50.0%
Average floor plate (s.f.) 35,000
Average number of stories 4
Average asking rent ($ p.s.f.) $27.00
Notable deliveries past 12 months
Building Submarket RBA (s.f.) Delivered
Leased at
delivery (%)
805 N. Whittington Parkway Hurstbourne 140,000 Q4 2018 50.0%
Total pre-leased (%) 10.7%
Total under construction (s.f.) 457,810
Total under renovation (s.f.) -
Average floor plate (s.f.) 20,396
Average asking rent ($ p.s.f.) $13.60
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 72,000 Q4 2020 0.0%
13906 Promenade Green Way 66,050 Q2 2019 0.0%
2201 High Wickham Place 60,760 Q2 2019 0.0%
2500 Eastpoint Parkway 48,000 Q2 2019 50.0%
1801 Tucker Station Road Bldg
1
45,000 Q3 2019 0.0%
1701 English Station Road 40,000 Q2 2019 100.0%Middletown/Eastpoint Linak BTS
Upcoming deliveries by year (s.f., excludes YTD completions)
Schulte Design and Construction
BTS
Speculative
Southeast Hollenbach Oakley BTS
Middletown/Eastpoint
Hollenbach OakleySoutheast
Middletown/Eastpoint Schulte Design and Construction Speculative
Middletown/Eastpoint V-Soft BTS
BTSNTS Development
River Road/Brownsboro NTS Development Company Speculative
Owner/developer Spec or BTSSubmarket
Under construction/renovation
457,810
Under construction/renovation (s.f.)
At a glance
Historical completions
Deliveries
At a glance
140,000
12- month deliveries (s.f.)
Spec/BTSOwner/developer
133,000
378,810
72,000
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
BTS Speculative BTS
2019 2020
175,000
260,000
248,000
328,400
192,500
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
2014 2015 2016 2017 2018

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.
Q4 2018
Leasing
Louisville Office Outlook
2
Address: 1951 Bishop Lane
Square Feet: 31,030
Tenant: RxCrossroads
Type: Expansion
2
1
Address: 1930 Bishop Lane
Square Feet: 16,500
Tenant: UPS
Type: Expansion
3
3
Address: 10400 Linn Station
Square Feet: 40,000
Tenant: Finance & Banking
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.
4
Address: 3621 Fern Valley
Square Feet: 25,000
Tenant: Chewy, Inc
Type: New Lease
4

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%
2014 2015 2016 2017 2018
Louisville U.S.
23%
14%
14%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
Q4 2018
Employment
Louisville Office Outlook
3.7%U.S. unemployment
1.6%U.S. 12-month job growth
3.9%Louisville unemployment
0.7%Louisville 12-month job growth
4.5%Kentucky unemployment
0.5%Kentucky 12-month job growth
-2,400
-1,000
-1,000
-700
-200
-100
400
500
1,100
1,500
-3,500 -2,500 -1,500 -500 500 1,500 2,500
Educational & Health Services
Mining, Logging & Construction
Leisure & Hospitality
Manufacturing
Government
Information
Trade, Transportation & Utilities
Financial Activities
Other Services
Professional & Business 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
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. Luke Bade
Associate
+1 502 394 2512
luke.bade@am.jll.com
Alex Westcott
Research Analyst
+1 502 394 2504
alex.westcott@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.
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