Commercial Real Estate Market in Louisville, KY
Updated monthly: sale, lease, property records, location trend, and more… · Last update: August 31
1,427 active listings and 16,854 off-market properties in Louisville, KY. Commercial property asks $88/SF to buy and $16.69/SF/Yr to lease. Office vacancy runs 18.8%, the loosest of the segments tracked here.
Market Trends
Louisville, KY spans 353.2 square miles in Jefferson County, Kentucky. Figures below refresh monthly; last updated 31 August 2026.
Office
Office space in Louisville, KY asks $17.38/SF/Yr to lease. Vacancy runs 18.8% in 2025, up from 12.4% in 2019.
Average Lease Price $/SF/Yr
Listings
Vacancy Rate %
Retail
Retail space in Louisville, KY asks $13.93/SF/Yr to lease. Vacancy runs 4.8% in 2025, down from 5.4% in 2019.
Average Lease Price $/SF/Yr
Listings
Vacancy Rate %
Industrial
Industrial space in Louisville, KY asks $11.35/SF/Yr to lease. Vacancy runs 3.7% in 2025, down from 5.1% in 2019. Nearly 2.2x the 2021 low of 1.7%.
Average Lease Price $/SF/Yr
Listings
Vacancy Rate %
Multifamily
Multifamily space in Louisville, KY asks $120/SF to buy. Vacancy runs 11.3% across the South region in 2025, up from 8.5% in 2022.
Average Sale Price $/SF
Listings
Vacancy Rate % in South region
Zoning & Land Use
Land Use Mix share of zoned land by category
- Residential 82.1%
- Industrial 6.1%
- Commercial 3.3%
- Planned_development 0.6%
Largest Zones share of zoned land by district
Residential Single Family District
Residential Single Family District
Residential Single Family District
Enterprise Zone District
Rural Residential District
Louisville, KY zones 180,744 acres across 35 districts. Commercial zoning covers 3.3% of zoned land, residential 82.1% and industrial 6.1%. The largest single district is Residential Single Family District at 50.8%. For commercial buyers the practical constraint is that only 9.4% of land carries a commercial or industrial designation.
Residential Single Family District (R4)
The intent of this zone is to promote Residential Single‑Family District uses
Market overview
Demographics & Economy
Louisville, KY has 772,772 residents in 351,549 households. Density runs 2,188 people per square mile. Median household income here is $69,908 and median gross rent $1,144 a month.
772,772
Population
351,549
Households
2.2
Avg Household Size
39
Median Age
35%
College-Educated
91%
High-School Grad
353.2 sq mi
ZIP Area
2,188
Density / Sq Mi
$69,908
Median Household Income
$43,670
Median Earnings
$1,144
Median Rent
$237,927
Median Home Value
Tools
Nearby Markets
| Market | Average Sale Price, $/SF | Average Lease Price, $/SF/Yr |
|---|---|---|
| Maryhill Estates | — | — |
| Bellewood | — | — |
| Druid Hills | — | — |
| Richlawn | — | — |
Commercial property in Louisville, KY asks $88/SF.
Frequently Asked Questions
What is the average price per square foot for commercial property in Louisville?
Commercial property in Louisville, KY asks an average of $88 per square foot. The 6 most recent recorded sales traded at a median of $91/SF. Multifamily carries the highest asking price at $120/SF.
How much does it cost to lease commercial space in Louisville?
Asking lease rates in Louisville, KY average $16.69 per square foot per year. Office asks $17.38/SF/Yr as of Q1 26, little changed from $17.38/SF/Yr in Q4 25.
What is the office vacancy rate in Louisville?
Office vacancy in Louisville, KY is 18.8% as of 2025, up from 12.4% in 2019. That is the highest in the 7-year series. Retail vacancy is 4.8%, below Office vacancy.
Which property type has the lowest vacancy in Louisville?
Industrial has the lowest vacancy in Louisville, KY at 3.7%, inside a 1.7–5.1% band since 2019. For comparison: office 18.8%, retail 4.8% and multifamily 11.3% (South).
What zoning applies to commercial property in Louisville?
Louisville, KY zones 180,744 acres across 35 districts, of which 3.3% is commercial and 6.1% industrial. The largest single district is Residential Single Family District at 50.8% of zoned land. The intent of this zone is to promote Residential Single‑Family District uses Residential zoning covers 82.1% and open space 0%.
Where does Realmo's Louisville market data come from?
Realmo compiles Louisville, KY figures from 6 recent recorded sales, 905 active sale listings, 522 active lease listings, 16,854 tracked off-market properties, the current Louisville zoning release. Sale and lease figures refresh monthly; vacancy annually. Last updated 31 August 2026.
Methodology & data sources
- Asking prices and averages
- Computed from 905 active for-sale and 522 active for-lease listings in Louisville, KY. These are ASKING figures from live listings, not closed-transaction prices, and a segment carried by a handful of listings reads as indicative rather than an average.
- Vacancy rates
- Published per-sector market series, taken at the metro level where one exists and otherwise at the Census-region level — a chart reading "in <region> region" is a regional number, not this city's.
- Zoning and land use
- The current municipal zoning release: 180,744 zoned acres across 35 districts. Shares are of zoned land, so parcels the release leaves unclassified are excluded from the mix.
- Refresh
- The monthly aggregates close at the end of the previous month, so 31 August 2026 — not today — is the honest last update.
- Known limitations
- multifamily vacancy is reported at South region level.
- Coverage
- Metrics below the 10-observation threshold fall back one geographic level. The geography used is named on each figure.
Compiled by the Realmo Data team · reviewed 31 August 2026 · report a data issue
