NAI Isaac Releases Lexington, KY CRE 2016 Yearend Market Report



YEAREND 2016
The Lexington Kentucky commercial real estate market remained active during 2016 with notable vacancy decreases in Suburban and Central Business District (CBD) office sectors and vacancy increases in Retail and Industrial sectors. Suburban Office experienced the largest vacancy decrease with a decline of 23.4%, resulting in a vacancy rate of 10.51%. The CBD Office category experienced a 10% vacancy rate decrease, a positive indication for the downtown Lexington area. Leasing activity and market rental rates for all commercial sectors have remained steady throughout 2016. This report surveys Class A & B properties that are 10,000 square feet and larger. NAI Isaac compiled and analyzed data on approximately 528 commercial properties representing over 32 million square feet of office, retail and industrial premises.

 2017 FORECAST 
Leasing activity should continue to increase in the first two quarters of 2017 with positive absorption anticipated for all sectors. Rental rates will continue to be stable in the CBD Office, Suburban Office, Retail and Industrial sectors with demand also remaining constant. The vacancy rate for Suburban Office will increase as some large blocks of previously occupied space become available.

2016 Year in Review
2016 was a dynamic year for the Lexington Commercial Real Estate Market. All indicators of economic growth improved during 2016 which assisted the CBD Office and Suburban Office in reducing vacancy and minimized the Industrial and Retail vacancy increase. The Retail and Industrial markets vacancy rates are still very low.
  • The Retail Market had a vacancy increase due to several developments, including The Summit and The Venue, nearing completion and ready for tenant possession. The additional square footage created the increase in vacancy.
  • The CBD Office Market had progressive absorption with higher occupancy in 2016.
  • With the continued improvement, the Suburban Office Market has shown the largest absorption with a vacancy decrease of 23.4% since mid-year 2016.
  • The Industrial Market experienced a very slight increase in vacancy but continues to show strong demand

Comments

Post a Comment

Popular posts from this blog

Wingstop Joining Tates Creek Centre!

Image
Lexington, KY -  NAI Isaac, a full-service commercial real estate brokerage and property management firm, facilitated the lease of Wingspot at Tates Creek Shopping Centre - 4101 Tates Creek Centre Drive, Lexington, Kentucky. This makes one of the first Wingstop locations in the Lexington market! Paul Ray Smith, Jr., Executive Vice President, J.L. Cannady, Vice President, and Zach Smith, Senior Associate, at NAI Isaac, represented the Landlord. Casey Smallwood of SRS Real Estate Partners represented the Tenant.  Tates Creek Shopping Centre  is a 196,028 SF Kroger-anchored center, well-positioned within a highly desirable trade area with strong residential support and a quality tenant mix of retail, restaurant, and service tenants. Some of those tenants include Walgreen's, Proof Fitness, Pet Supplies Plus, and Kroger Fuel, Wine & Spirits, Drive-thru Pharmacy and ClickList. Wingstop  is a fast-casual restaurant chain specializing in chi...
Read more

NAI Isaac Announces the Sale of Whitesburg Plaza!

Image
  Whitesburg, KY  - NAI Isaac announces the sale of  Whitesburg Plaza on State Highway 2034 in Whitesburg, Kentucky.   Bruce Isaac, SIOR, CCIM, Senior Vice President, at NAI Isaac, represented the Seller. The Buyer was represented by Stan Falk with Lee and Associates Cincinnati.  Whitesburg Plaza  is a 111,122 SF community shopping center which serves the trade area of Letcher County. The center is anchored by Walmart and Price Less Foods. Other tenants include Auto Zone, Cricket Wireless, Rent-A-Center, Little Caesars, H & R Block, Members Choice Credit Union, Reflections Hair Salon, Jumbo House Chinese Restaurant, TVs Cable, and Appalachian Wireless. 
Read more

NAI Isaac Welcomes Naz's Halal Food to HUB Limestone in Lexington, Kentucky

Image
  Lexington, KY -  NAI Isaac, a full-service commercial real estate brokerage and property management firm, facilitates the lease to Naz's Halal Food at  685 South Limestone, Lexington , KY. John P. Miller, Assistant Vice President, and Zach Smith, CCIM, Senior Associate, at NAI Isaac, represented the Landlord. Naz's Halal Food  was founded in 2009 by cousins Naz and Kareem, both former public school teachers, with a passion for bringing authentic NYC halal food to communities. What began as a dream to offer great halal food quickly evolved into a family-driven journey that now boasts over 40 locations across the country. Each Naz's Halal Food store is locally owned and operated by families from the community, creating a personal connection with the neighborhoods they serve. The menu at Naz’s Halal includes a wide variety of dishes, such as chicken or lamb over rice, gyros, burgers, wings, and a selection of diverse desserts, offering something for everyone. Now...
Read more