The office market in Lexington, Kentucky? It ended the first half of 2019 on a positive note and continues to show strength in the year’s second half, according to the latest research from NAI Isaac.
NAI Isaac, in its midyear 2019 office report for the Lexington-Fayette office market, said that Class-A and Class-B office buildings in the Central Business District ended the first half of the year with a combined 13.13 percent vacancy rate.
Class-A office space had a vacancy rate of just 11.74 percent during the first half of the year. That rate was a higher 14.39 percent for Class-B building.
The story was similar in the suburbs. NAI Isaac reported that the combined vacancy rate of Class-A and Class-B suburban office space stood at 14.73 percent at the end of the year’s first half. The Class-A vacancy rate in the suburbs was 15.11 percent, while the Class-B rate was a slightly lower 14.59 percent.
The star sector in the area, though? That has to be industrial. NAI Isaac reported that the industrial vacancy rate in the Lexington-Fayette area fell to 2.77 percent. This could make life difficult for companies looking for industrial space here. NAI Isaac said that the industrial market ended the second quarter of 2019 with just 511,045 square feet of vacant industrial space.
And the retail sector? That’s actually performing at a steady rate in the Lexington area. NAI Isaac said that overall vacancy rate in the company’s sample of 257 retail buildings hit 6.49 percent as of the end of the first half of the year. This does leave 910,483 square feet of vacant retail space in the market.
Community and power centers, as is common across the Midwest, had the highest vacancy rate, 9.05 percent as of the end of the first half of the year. Neighborhood retail centers had a vacancy rate of 8.31 percent, while regional malls had a vacancy rate of just 4.30 percent.
