Louisville Industrial Real Estate Market

For the last several weeks I have been working on a report for a client detailing the state of the Louisville Industrial Real Estate market.   Most of us have at least anecdotal evidence that things there are getting better but it was really amazing to gather some hard facts.

Last year (2014) marked the return of spec Industrial projects.   The Louisville market added more than 2 Million square feet of industrial space and the overall vacancy rate still declined.    Some estimates claim that the vacancy rate for Louisville industrial space is below 4%.     There were 9 industrial leases signed for 200,000 SF or more totaling nearly 2.7 Million SF.  

According to the Federal Reserve's Burgundy Book for the Louisville region, the two main factors for this are the improvement in the job picture and decline in fuel prices.     Jobs, of course will vary with the economic conditions.   The decline in fuel prices however seems to be largely due to the fracking revolution.    This revolution is leading the US to energy independence perhaps as soon as one year from now.    And it is fundamentally changing the world's energy market as the US becomes the world's number one energy producer.    This bodes very well for the US economy in general and especially benefits two key industries of manufacturing and transportation locally.  

The key players in our industrial market are all bullish on their prospects.   Ford expects car sales to continue to increase.   UPS experienced 8% growth last year and expects things to continue to improve.   Electrolux saw an increase in appliance sales in North America of 6% last year and expects the demand to increase as the North American residential real estate market continues it's comeback.

In short, things are looking good and it looks like we can expect this to continue for a while.

It's really nice to be able to share some good news.

Have a great day!

David

David W. McCoy
Vice President
Commonwealth Commercial Real Estate
dmccoy@ccre.biz

BTW - I am licensed in KY and IN.  I specialize in commercial properties and handle Office, Industrial, Land, Investment and Retail properties.  I work with buyers, sellers, landlords, tenants and investors.   I also work with international real estate and internationals looking for real estate.     Please let me know if I can help you.

International Real Estate

I have a new credential.   I was selected to be the National Association of Realtors Presidential Liaison to Jamaica!    

If you have read past posts, you may know that I enjoy travel, languages and cultures.   So a couple of years ago, I went to an International Real Estate conference and got a designation as a Certified International Property Specialist.  

Commercial Real Estate is still my bread and butter but it is such a blast to meet all of these people from all over the world and set up connections.    Becoming the Presidential Liaison to Jamaica is another step in that direction.    

I will be attending several International Real Estate events in Washington, DC later this year at the NAR mid-year conference, as well as several events later in the year in San Diego at the NAR annual national convention.   AND I will be traveling at least once this year to Jamaica.

It's going to be a fun year!

BTW - Let me know if you could use some help with Commercial Real Estate or International Real Estate.  I am licensed in Kentucky and Indiana.   I work with sales and leasing and represent buyers, sellers, landlords, tenants and investors.  

Have a great day!

David

David W. McCoy
Vice President / Broker
Commonwealth Commercial Real Estate
DMcCoy@ccre.biz
502-379-6005