NAI Isaac Releases Lexington, KY CRE 2016 Yearend Market Report
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
- 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