Commercial Real Estate Market in Owensboro, KY
Updated monthly: sale, lease, property records, location trend, and more… · Last update: August 31
195 active listings and 4,147 off-market properties in Owensboro, KY. Commercial property asks $219/SF to buy and $26.41/SF/Yr to lease.
Market Trends
Owensboro, KY spans 221.9 square miles in Daviess County, Kentucky. Figures below refresh monthly; last updated 31 August 2026.
Office
Office vacancy in Owensboro, KY runs 20.2% across the South region in 2025, up from 14.4% in 2019.
Vacancy Rate % in South region
Retail
Retail vacancy in Owensboro, KY runs 5.4% across the South region in 2025, down from 7% in 2020.
Vacancy Rate % in South region
Industrial
Industrial vacancy in Owensboro, KY runs 7.9% across the South region in 2025, up from 6% in 2019. Nearly 2.3x the 2022 low of 3.5%.
Vacancy Rate % in South region
Multifamily
Multifamily vacancy in Owensboro, KY runs 11.3% across the South region in 2025, up from 8.5% in 2022.
Vacancy Rate % in South region
Zoning & Land Use
Land Use Mix share of zoned land by category
- Residential 54.1%
- Commercial 24.9%
- Industrial 19.3%
- Agricultural 1.7%
Largest Zones share of zoned land by district
Single Family Detached Residential
General Business
Professional Service
Heavy Industrial
Inner City Residential
Owensboro, KY zones 13,598 acres across 18 districts. Commercial zoning covers 24.9% of zoned land, residential 54.1% and industrial 19.3%. The largest single district is Single Family Detached Residential at 16.3%. For commercial buyers the practical constraint is that only 44.3% of land carries a commercial or industrial designation.
General Business (B-4)
Business, B-4 General Business, I-1 Light Industrial, I- 2 Heavy Industrial , P -1 Professional Service , and R - 4DT Inner City Residential zones. 21.21 Establish Specific Standards . Creation of different character districts within the Downtown Overlay area will enable specific site and locational standards to be enum erated and applied. Such standards wil…
Market overview
Demographics & Economy
Owensboro, KY has 86,760 residents in 37,888 households. Density runs 391 people per square mile. Median household income here is $62,493 and median gross rent $911 a month.
86,760
Population
37,888
Households
2.3
Avg Household Size
39
Median Age
26%
College-Educated
90%
High-School Grad
221.9 sq mi
ZIP Area
391
Density / Sq Mi
$62,493
Median Household Income
$39,220
Median Earnings
$911
Median Rent
$181,951
Median Home Value
Tools
Lease vs Buy Breakeven
At $26.41/SF/Yr lease vs $219/SF buy → buying wins if held > 1 years.
At a 12.1% gross asking yield the payback reads short relative to leasing. Assumes 30% down at 6.5% fixed, 2% a year in taxes and upkeep, 3% appreciation, 5% opportunity cost, 2% closing plus 5% selling costs, and a 3% annual rent escalator.
Nearby Markets
| Market | Average Sale Price, $/SF | Average Lease Price, $/SF/Yr |
|---|---|---|
| Philpot | — | — |
| Rockport | — | — |
| Patronville | — | — |
| Stanley | — | — |
Commercial property in Owensboro, KY asks $219/SF.
Frequently Asked Questions
What is the average price per square foot for commercial property in Owensboro?
Commercial property in Owensboro, KY asks an average of $219 per square foot.
How much does it cost to lease commercial space in Owensboro?
Asking lease rates in Owensboro, KY average $26.41 per square foot per year.
Is it cheaper to lease or buy commercial space in Owensboro?
Buying beats leasing in Owensboro, KY if the property is held longer than 1.0 years, comparing $26.41/SF/Yr asking rent with $219/SF asking price. The model assumes 30% down at 6.5% fixed, 2% of value per year in taxes and upkeep, 3% appreciation, 5% opportunity cost on the cash and a 3% annual rent escalator.
What zoning applies to commercial property in Owensboro?
Owensboro, KY zones 13,598 acres across 18 districts, of which 24.9% is commercial and 19.3% industrial. The largest single district is Single Family Detached Residential at 16.3% of zoned land. Residential zoning covers 54.1% and open space 0%.
Where does Realmo's Owensboro market data come from?
Realmo compiles Owensboro, KY figures from 2 recent recorded sales, 129 active sale listings, 66 active lease listings, 4,147 tracked off-market properties, the current Owensboro zoning release. Sale and lease figures refresh monthly; vacancy annually. Last updated 31 August 2026.
Methodology & data sources
- Asking prices and averages
- Computed from 129 active for-sale and 66 active for-lease listings in Owensboro, 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: 13,598 zoned acres across 18 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
- office vacancy is reported at South region level, retail vacancy is reported at South region level and industrial 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
