As president of Lexington, Kentucky-based NAI Isaac, Al Isaac understands just how strong the commercial real estate market is in his market today. But what’s behind that strength? Midwest Real Estate News asked Isaac three big questions about Lexington’s CRE market. Here’s what he had to say:
Here’s the obvious question: How strong is CRE activity in Lexington today?
Al Isaac: The Lexington commercial real estate market is very strong and in the past has proven to be resilient during downturns in the economy. The Lexington commercial real estate market’s strength is derived from the following facts: Lexington has a diverse employment base spread among many industries and has an educated workforce. Lexington is centrally located 600 miles from 50 percent of the United States’ population at the crossroads of two major interstates, I-75 and I-64. This gives companies direct access to both north/south and east/west routes.
Lexington is highly regarded as a good city for entrepreneurship and innovation, and Lexington has all the necessary components for a strong entrepreneurial ecosystem. Lexington is a low-cost city for businesses to operate and offers a high quality of life.
Which commercial sectors are performing especially well today in Lexington?
Isaac: Lexington’s retail and industrial segments are the leading categories for strength in the commercial market. The retail vacancy rate is only plus-or-minus 5 percent. The industrial real estate’s vacancy rate is only about 3 percent.
Lexington has not overbuilt retail and industrial properties. The city has a large trade area and great geographic connectivity, which helps create a very healthy retail and industrial property environment.
Lexington’s office market has been stable and has recently seen the opening of City Center in the central business district. City Center is a $200 million mixed-use project developed by the Webb and Greer Companies that contains 147,000 square feet of office space as well as retail, hotels, restaurants and luxury condos.
What would you tell business owners who were interested in opening locations in Lexington?
Isaac: Lexington, Kentucky, is a great place to locate your business.
Lexington’s diverse economy, educated workforce, the high quality of life for residents matched with the low cost of doing business all make Lexington a top place to conduct business.
