Louisville's office market saw continued growth in the fourth quarter or 2016 — and it doesn't look like it will slow down any time soon.
CBRE's Office MarketView reported Thursday that the Louisville city posted positive net absorption in the last quarter, with a $0.20 per square foot increase in average asking lease rate, bringing the average price to $17.36 per square foot.
"It's been another strong year for Louisville's office market and we expect this to continue into 2017," said David Hardy, managing director.
Over the last three years, Louisville has continued to break the 300,000-square-foot threshold, posting a total net absorption in 2016 of 318,112 square feet. Yet, the Louisville market saw its Class A property vacancy rate drop 20 basis points to 10.8 percent, while the Class B vacancy rate fell 120 basis points to 15.5 percent during the fourth quarter.
CBRE found that the drop in vacancy and gain in net absorption are tied to tenants expanding within their current properties, while Class B properties welcomed new tenants.
Meanwhile, Louisville's Class A suburban buildings saw 124,088 square feet and Class B suburban properties saw 60,663 square feet of leasing activity in the fourth quarter.