MARKET OUTLOOK
- Consumer Spending Rebound: Despite early economic uncertainty, U.S. retail sales closed Q2 strong, rising 0.6% in June as consumer confidence improved.
- Suburban Retail Strength: Prime corridors in eastern and northeastern Louisville saw strong leasing, with backfill space surpassing $30 psf and new builds exceeding $50 psf.
- New-to-Market Retailers: PGA Tour Superstore, REI Co-Op, and Burlington quickly absorbed key vacancies, underscoring demand for quality space.
- Downtown Hospitality Growth: Two new hotels — Tempo by Hilton and Hotel Bourre Bonne — added momentum to Louisville’s urban core and convention business.
MARKET FUNDAMENTALS
YOY
Chg
Outlook
73.1K
Median HH Income
0.7%
Population Growth
4.8%
Unemployment Rate
ECONOMIC INDICATORS
YOY
Chg
Outlook
1.4%
GDP Growth
2.4%
Consumer Spending Growth
2.0%
Retail Sales Growth
Source: BEA, Census Bureau
KEY INSIGHTS
The U.S. economy regained momentum late in Q2 2025 as consumer spending rebounded, lifting retail sales 0.6% in June despite lingering inflationary pressures. Louisville’s retail market remains exceptionally strong, led by eastern and northeastern suburban corridors where vacancy is low and rents are rising — exceeding $30 psf for backfill space and $50 psf for new builds. Demand remains robust, with PGA Tour Superstore, REI Co-Op, and Burlington quickly filling big-box vacancies. Downtown, hospitality growth is fueling activity, highlighted by the new Tempo by Hilton in NuLu and the $75 million Hotel Bourre Bonne near the convention center.
