LOUISVILLE, KY — Following three years of improving operations, fundamentals in the Louisville office market are expected to level off through the rest of 2008, according to a second-quarter Office Research Report by Marcus & Millichap, the nation’s largest real estate investment services firm.Demand for office space persists, driven by healthy office-using employment that is expected to increase by 1 percent this year, significantly outpacing other metros in the region.
“Out-of-state investors have remained active in the metro as a result of attractive yield premiums and continued rent growth,” says Gary R. Lucas, (top right photo) regional manager of the Louisville office of Marcus & Millichap.
Following are some of the most significant aspects of the Louisville Office Research Report:
· Employers are expected to expand payrolls by 0.1 percent, or 500 jobs, this year.
· Developers are on pace to add 200,000 square feet of office space to Louisville this year, boosting metro stock by nearly 1 percent.
· Vacancy is forecast to end the year at 13.8 percent.
· Asking rents are projected to end 2008 at $15.93 per square foot, an increase of 0.9 percent.
· Effective rents will reach $13.07 per square foot, a gain of 0.7 percent.
For a copy of the complete Louisville Office Research Report, as well as reports on other markets nationwide, visit our website at http://www.marcusmillichap.com/.
Press Contact: Stacey Corso, Communications Department,
(925) 953-1716
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