Yearend 2015 CRE Market Report for Lexington, Kentucky
The Lexington commercial real estate market was stable during 2015 with very slight vacancy increases in some categories and a decrease in one category. A notable decrease in vacancy of 12.75% within the CBD sector indicates a rise in business expansion in the downtown Lexington area. Leasing activity was stable and market rental rates for all commercial sectors have remained stable throughout 2015. This report surveys Class A & B properties that are 10,000 square feet and larger. NAI Isaac compiled and analyzed data on approximately 523 commercial properties representing over 32 million square feet of office, retail and industrial premises.
Leasing activity should continue to increase in the 1st quarter of 2016 with positive absorption anticipated for all sectors. Rental rates will continue to be stable in the CBD & Suburban Office sectors and should slightly increase in Retail & Industrial as the level of vacancies indicate a need for new development in certain locations.
2015 Year in Review
2015 was a positive year for the Lexington Commercial Real Estate Market. All indicators of economic growth improved during 2015 which assisted the CBD Office and Industrial categories in reducing vacancy and minimized the Retail vacancy increase.
- The Retail Market remained relatively stable with a slight increase in vacancy. There is still unmet demand for retail space in the regional shopping corridors.
- The CBD Office Market had positive absorption with higher occupancy in 2015.
- The Suburban Office Market had a small vacancy increase primarily due to sublease and company owned space being placed on the market.
- The Industrial Market experienced a slight increase in vacancy but continues to show strong demand.
- Al Isaac, President