IRR-Louisville Mid-Year Viewpoint 2015 Local Market Report - Retail
In retail-starved southwest Louisville, the addition of a Chick-fil-A and Raising Cane’s was met with media fanfare. Speaking of chicken, the long-time KFC in the Highlands closed in late April and is for sale for $1.5MM. The site has generated considerable interest for redevelopment, though no potential buyers have come forth yet. In the downtown market, retail has suffered from the Ohio River Bridges Project, with Hillbilly Tea on S. 1st Street as the latest to close its doors.
The Kentucky International Convention Center, which brings massive crowds to surrounding restaurants and shops, will close in August 2016 for two years, undergoing extensive renovation and modernization. This will certainly have an impact on downtown retail and hotels, particularly as the CBD office market struggles with high vacancy. One bright spot is the long-delayed Whiskey Row project on West Main Street, across from an Aloft Hotel currently under construction.
The bourbon industry continues to experience a boom, and Louisville and the Commonwealth are primary benefactors. The former Incredible Dave’s space at 9236 Westport Road has been leased to Ollie’s Bargain Outlet, its second Louisville-area location. Ollie’s opened in May. Further east, and despite considerable opposition from neighbors, Aldi opened a new location at 10620 Westport Road, near the I-265 interchange. Facing increased competition in the local market, Kroger is investing a combined $62MM to update and expand its Holiday Manor and Clifton stores. Early success of the Outlet Shoppes of the Bluegrass, in nearby Simpsonville, has prompted an expansion to accommodate H&M and Abercrombie & Fitch, among other retailers. The 14-screen Xscape Theatres at Blankenbaker Parkway and I-64 is expected to open this Summer. Lastly, plans were announced to build a Costco at the site of the former Showcase Cinemas, though construction has not yet begun.
Download the full version PDF of this Local Market Report below. It includes graphs and tables.
IRR Mid-Year Viewpoint 2015 comprises a National Overview report and 300+ two-page Local Market Reports for all key property types as well as additional resources, including metrics methodology, graphs, and tables; these free reports may be downloaded from IRR’s site here.