An in-depth look at the Louisville industrial market. Analysis includes leasing, sales, construction and employment.

1. Industrial
Outlook
An in-depth look at the
Louisville industrial market.
Analysis includes leasing,
sales, construction and
employment.
Louisville | Q2 2020
JLL Research

2. © 2017 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.
Q2 2020
Louisville
Industrial Insight
The Louisville industrial market has been relatively slow the first two quarters
of 2020, with modern bulk vacancy north of 7.5 percent. This rise in vacancy is
due to some new deliveries coming online, as well as a few lease expirations.
Despite rising vacancy, demand feels vibrant with several executed leases
expected in the third quarter on facilities in several size groups, and we expect
several new users to commit to the market.
Construction activity remain solid with several buildings delivering this
quarter. The 168,000-square-foot AirTech Park delivered fully leased, and Gray
Construction received a CO for the 256,000-square-foot building in River
Ridge. Also, Clarion completed the 659,790-square-foot Silver Creek Logistics
Center in Sellersburg. This site at first appeared to be a bit pioneering but
access to I-65 and proximity to River Ridge may prove to be a shrewd play. We
anticipate other developers will follow this example to use creative thinking to
find future viable industrial sites. Creative solutions for industrial developers
will become more important over the next five-years as JLL expects an
increase in e-commerce sales will drive demand for industrial real estate to an
additional 1-billion square feet across the country. Given the Louisville
market currently has over 5-million square feet in production, it should be
well positioned to take advantage of this exponential growth.
On the investment side, it has been a slow start to the year. However, there are
several intriguing packages currently available and early returns indicate the
investment appetite is approaching pre-COVID-19 levels.
Outlook
Despite a slow start to the year, it is our expectation that the momentum in
the market will translate into an increase in deal velocity and potential
investment sales. There remains significant interest from developers looking
to build in Louisville for the first time, as well as those with existing assets
looking to expand their local portfolios.
For more information, contact: Alex Westcott | alex.westcott@am.jll.com
• Clarion’s 659,790-square-foot building delivered this quarter in
Sellersburg, Indiana.
• Optimism remains within the modern bulk sector due to an increase in
e-commerce demand.
• Tenant demand has remained steady with an increase in deals expected
in the second half of 2020.
Fundamentals Forecast
YTD net absorption 844,728 s.f. ▶
Under construction 5,237,662 s.f. ▲
Total vacancy 7.6% ▶
Sublease vacancy 475,000 s.f. ▲
Average asking rent $4.00 p.s.f. ▲
Concessions Stable ▶
Market activity remains steady, strong second half of 2020
expected
0
2,000,000
4,000,000
6,000,000
2016 2017 2018 2019 YTD 2020
Supply and demand (s.f.) Net absorption
Deliveries
2%
4%
6%
8%
10%
12%
14%
16%
2008 2010 2012 2014 2016 2018 2020
Total vacancy
$2
$3
$4
$5
2006 2008 2010 2012 2014 2016 2018 2020
Average asking rent ($ p.s.f.) Direct
Sublease
The health, policy, economic and financial disruption stemming from the COVID-19
pandemic continues to create a fluid and evolving environment for the industrial
market. Although data from Q2 is providing greater clarity about conditions and the
short-term real estate outlook, there remains significant uncertainty surrounding
market dynamics and long-term trajectories and, as a result, we will continue to
monitor fundamentals closely as the situation unfolds. Please feel free to contact us
if we can assist.

3. © 2017 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.
Inventory
(s.f.)
YTD
total net
absorption
(s.f.)
YTD
total net
absorption
(% of inventory)
Total
Vacancy (%)
Average
total asking
rent
($ p.s.f.)
YTD
completions
(s.f.)
Under
construction
(s.f.)
Airport 25,391,591 352,800 1.4% 5.2% $4.00 604,880 1,535,857
Bullitt County 13,647,026 -267,033 -2.0% 16.0% $3.98 0 2,205,258
East 6,135,648 0 0.0% 0.9% $5.95 0 0
Riverport 12,557,133 76,200 0.6% 4.7% $3.72 0 314,500
Southern Indiana 11,935,172 0 0.0% 9.9% $3.80 150,000 916,290
Louisville Totals 69,666,570 161,967 0.2% 7.7% $3.94 754,880 4,971,905
Analyzes all industrial buidings greater than 100,000 s.f. with a minimum clear height of 24'
1,934,181 2,059,001
2,742,889
3,029,702
3,843,783
2,568,298
5,710,124
5,241,178
844,728
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
2012 2013 2014 2015 2016 2017 2018 2019 Q2 2020
Q2 2020
Statistics
Louisville Industrial Outlook
8.3%
7.2%
6.6%
5.7%
8.7%
11.7%
9.4%
6.9%
7.6%
2.0%
5.0%
8.0%
11.0%
14.0%
2012 2013 2014 2015 2016 2017 2018 2019 Q2 2020
© 2020 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.
Total Vacancy Rate %
Total Net Absorption
Inventory
(s.f.)
YTD
total net
absorption
(s.f.)
YTD
total net
absorption
(% of inventory)
Total
Vacancy (%)
Average
total asking
rent
($ p.s.f.)
YTD
completions
(s.f.)
Under
construction
(s.f.)
Airport 25,559,591 563,681 2.2% 4.1% $4.09 604,880 1,535,857
Bullitt County 13,647,026 -267,033 -2.0% 16.0% $3.98 4 2,205,258
East 6,135,648 22,000 0.4% 0.5% $5.95 0 0
Riverport 12,594,962 128,200 1.0% 4.3% $3.70 0 314,500
Southern Indiana 12,557,133 397,880 3.2% 11.5% $3.83 150,000 916,290
Louisville Totals 70,494,360 844,728 1.2% 7.5% $3.96 754,884 4,971,905
Analyzes all industrial buidings greater than 100,000 s.f. with a minimum clear height of 24'
Inventory
(s.f.)
YTD
total net
absorption
(s.f.)
YTD
total net
absorption
(% of inventory)
Total
Vacancy (%)
Average
total asking
rent
($ p.s.f.)
YTD
completions
(s.f.)
Under
construction
(s.f.)
Airport 25,559,591 563,681 2.2% 4.1% $4.09 604,880 1,692,273
Bullitt County 13,647,026 -267,033 -2.0% 16.0% $3.98 4 2,205,258
East 6,135,648 22,000 0.4% 0.5% $5.95 0 322,831
Riverport 12,594,962 128,200 1.0% 4.3% $3.70 0 314,500
Southern Indiana 12,557,133 397,880 3.2% 11.5% $3.83 150,000 702,800
Louisville Totals 70,494,360 844,728 1.2% 7.5% $3.96 754,884 5,237,662
Analyzes all industrial buidings greater than 100,000 s.f. with a minimum clear height of 24'
Inventory
(s.f.)
YTD
total net
absorption
(s.f.)
YTD
total net
absorption
(% of inventory)
Total
Vacancy (%)
Average
total asking
rent
($ p.s.f.)
YTD
completions
(s.f.)
Under
construction
(s.f.)
Airport 25,559,591 563,681 2.2% 4.1% $4.09 772,880 1,692,273
Bullitt County 13,647,026 -267,033 -2.0% 16.0% $3.98 0 2,205,258
East 6,135,648 22,000 0.4% 0.5% $5.95 0 322,831
Riverport 12,594,962 128,200 1.0% 4.3% $3.70 0 314,500
Southern Indiana 12,557,133 397,880 3.2% 13.2% $4.02 1,066,290 702,800
Louisville Totals 70,494,360 844,728 1.2% 7.8% $4.00 1,839,170 5,237,662
Analyzes all industrial buidings greater than 100,000 s.f. with a minimum clear height of 24'
Inventory
(s.f.)
YTD
total net
absorption
(s.f.)
YTD
total net
absorption
(% of inventory)
Total
Vacancy (%)
Average
total asking
rent
($ p.s.f.)
YTD
completions
(s.f.)
Under
construction
(s.f.)
Airport 25,559,591 563,681 2.2% 4.1% $4.09 772,880 1,692,273
Bullitt County 13,647,026 -878,033 -6.4% 19.4% $3.98 0 2,205,258
East 6,135,648 22,000 0.4% 0.5% $5.95 0 322,831
Riverport 12,594,962 128,200 1.0% 4.3% $3.70 0 314,500
Southern Indiana 12,557,133 397,880 3.2% 13.2% $4.02 1,066,290 702,800
Louisville Totals 70,494,360 233,728 0.3% 8.5% $3.99 1,839,170 5,237,662
Analyzes all industrial buidings greater than 100,000 s.f. with a minimum clear height of 24'
Inventory
(s.f.)
YTD
total net
absorption
(s.f.)
YTD
total net
absorption
(% of inventory)
Total
Vacancy (%)
Average
total asking
rent
($p.s.f.)
YTD
completions
(s.f.)
Under
construction
(s.f.)
Airport 25,559,591 563,681 2.2% 4.1% $4.09 772,880 1,692,273
Bullitt County 13,647,026 -267,033 -2.0% 14.9% $3.98 0 2,205,258
East 6,135,648 22,000 0.4% 0.5% $5.95 0 322,831
Riverport 12,594,962 128,200 1.0% 4.3% $3.70 0 314,500
Southern Indiana 12,557,133 397,880 3.2% 13.2% $4.02 1,066,290 702,800
Louisville Totals 70,494,360 844,728 1.2% 7.6% $4.00 1,839,170 5,237,662
Analyzes all industrial buidings greater than 100,000s.f. with a minimum clear height of 24'

4. © 2017 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.
Q2 2020
Sales
Louisville Industrial Outlook
This report analyzes all industrial sales > 75,000 s.f. year-to-date
© 2020 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.
$88,679,873
4
$76
5.00% - 5.75%
100.0%
0.0%
Top sales transactions last 12 months
Size (s.f.) $ p.s.f. Sale date
Pinchal 250,000 $52.50 Sep-19
Exeter Medline 400,000 $52.00 Sep-19
JW Mitchell Columbia Property 303,369 $158.00 Sep-19
Exeter 134,888 $51.00 Aug-19$6,289,873Trident Capital Group
Building address Buyer company
Transactions details
Seller company
12 month sales volume $ by submarket
Sales price $
4500 Progress Boulevard
101 Lewman Way Gray
Average Class A sale price p.s.f.
12 month transaction volume at a glance
Total volume
Number of transactions
Average Class A cap rate range
Sales activity by building type last 12 months
Warehouse/Dist. sales volume as % of
total
Manufacturing sales volume as % of
total
12900 Plantside Drive
1065 Conestoga Parkway
Top sellers (s.f.)Top buyers (s.f.)
$13,125,000
$20,800,000
$47,900,000
$88,679,873
1,088,257 s.f.
0 s.f.
500,000 s.f.
1,000,000 s.f.
1,500,000 s.f.
$0
$50,000,000
$100,000,000
Warehouse / Distribution
Sum of Price ($) Sum of RBA (SF)
49%
28%
23%
Exeter JW Mitchell Pinchal
37%
28%
23%
Medline Columbia Property Investors Gray TCG Progress
$47,900,000
$20,800,000
$13,150,000
$6,829,873
East
Bullitt County
Southern Indiana
Airport
$88,679,873
4
$76
5.00% - 5.75%
100.0%
0.0%
Top sales transactions last 12 months
Size (s.f.) $ p.s.f. Sale date
Pinchal 250,000 $52.50 Sep-19
Exeter Medline 400,000 $52.00 Sep-19
JW Mitchell Columbia Property 303,369 $158.00 Sep-19
Exeter 134,888 $51.00 Aug-19$6,289,873Trident Capital Group
Building address Buyer company
Transactions details
Seller company
12 month sales volume $ by submarket
Sales price $
4500 Progress Boulevard
101 Lewman Way Gray
Average Class A sale price p.s.f.
12 month transaction volume at a glance
Total volume
Number of transactions
Average Class A cap rate range
Sales activity by building type last 12 months
Warehouse/Dist. sales volume as % of
total
Manufacturing sales volume as % of
total
12900 Plantside Drive
1065 Conestoga Parkway
Top sellers (s.f.)Top buyers (s.f.)
$13,125,000
$20,800,000
$47,900,000
$88,679,873
1,088,257 s.f.
0 s.f.
500,000 s.f.
1,000,000 s.f.
1,500,000 s.f.
$0
$50,000,000
$100,000,000
Warehouse / Distribution
Sum of Price ($) Sum of RBA (SF)
49%
28%
23%
Exeter JW Mitchell Pinchal
37%
28%
23%
12%
Medline Columbia Property Investors Gray TCG Progress
$47,900,000
$20,800,000
$13,150,000
$6,829,873
East
Bullitt County
Southern Indiana
Airport

5. © 2017 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.
Total leased at delivery (%) 25.5%
Total speculative at delivery (s.f.) 2,471,138
Total BTS at delivery (s.f.) -
Total owner-user at delivery (s.f.) 469,000
Total # of properties delivered 10
Asking rental rate (low - high) $4.10 - $5.00
Largest projects last 12 months
Building/Address RBA (s.f.) Delivery date
Leased at
delivery (%)
Silver Creek Logistics Center, Bldg. A 659,790 Q2 2020 0%
Niagara River Ridge 469,000 Q3 2019 100%
Dermody Renaissance South 352,800 Q1 2020 0%
New Cut Center Bldg 2 331,928 Q4 2019 0%
Gray River Ridge II 256,500 Q2 2020 0%
Exeter New Cut 252,080 Q1 2020 0%
Total pre-leased (%) 0.0%
Total speculative under construction (s.f.) 5,237,662
Total BTS under construction (s.f.) -
Total Owner-user under construction (s.f.) -
Total # of properties UC 10
Asking rental rate (low - high) $3.95 - $5.25
Largest projects currently under construction
Building RBA (s.f.) Delivery date Pre-leased (%)
Bourbon Logistics Center 1,040,158 Q3 2020 0%
Logistics Airpark 931,907 Q1 2021 0%
Velocity 65 Trade Center Bldg. 2 908,600 Q4 2020 0%
Gateway 700 702,800 Q4 2020 0%
Airport Commerce Cener IV 324,416 Q4 2020 0%
Last Mile Logistics Center 283,820 Q3 2020 0%
Speculative
Bullitt County Core5 Speculative
Airport Nicklies Speculative
Construction typeOwnerSubmarket
Southern Indiana
Airport
Airport
Southern Indiana
Southern Indiana
Gray
Main Street Realty
Dermody
Niagara Bottling
Clarion
Speculative
Owner-user
New and historical deliveries
Completions in-depth
2,940,138
Total delivered past 12 months (s.f.)
Speculative
Submarket
Under construction
5,237,662
Under construction (s.f.)
Under construction in-depth
Upcoming deliveries by year (s.f., excludes YTD completions)
Airport Exeter Property Group Speculative
Owner Construction type
Speculative
Speculative
Speculative
Speculative
Airport
Airport
Bullitt County Speculative
Core5
Molto
Browning
Southern Indiana VanTrust
1,620,492
2,553,410 2,452,793
5,896,471
4,424,993
4,085,552
2,877,960
1,839,170
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
2013 2014 2015 2016 2017 2018 2019 2020
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
4,500,000
2020 2021
Speculative
Q2 2020
Construction
Louisville Industrial Outlook
This report analyzes all industrial developments under construction & new deliveries > 100,000 s.f.
© 2020 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.

6. © 2017 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.
Q2 2020
Construction
Louisville Industrial Outlook
1
Location: 200 Velocity Way
Square feet: 908,600
Tenant(s): None
Landlord: Browning
1
2
Location: 5530 Minor Lane
Square feet: 931,907
Tenant(s): None
Landlord: Nicklies
2
3
Address: 170 Clermont Drive
Square feet: 1,040,158
Tenant(s): None
Landlord: Core5
3
© 2020 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.
4
4
Address: 6611 Shepherdsville
Road
Square feet: 283,820
Tenant(s): None
Landlord: Core5

7. © 2017 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.
24%
14%
13%12%
12%
8%
7%
Trade, Transportation & Utilities
Educational & Health Services
Professional & Business Services
Government
Manufacturing
Leisure & Hospitality
Financial Activities
Mining, Logging & Construction
Other Services
Information
Q2 2020
Employment
Louisville Industrial Outlook
11.3%U.S. unemployment
-11.8%U.S. 12-month job growth
11.9%Louisville unemployment
-16.0%Louisville 12-month job growth
11.0%Kentucky unemployment
-14.8%Kentucky 12-month job growth
-50.0
-40.0
-30.0
-20.0
-10.0
0.0
10.0
20.0
2015 2016 2017 2018 2019 2020
Trade, Transportation & Utilities Manufacturing
Other Services Mining Logging & Construction
0%
4%
8%
12%
16%
20%
400,000
500,000
600,000
700,000
800,000
2015 2016 2017 2018 2019 2020
Employment Unemployment
Employment vs. unemployment rate
Employment by industry
Job growth (12-month change)
-27,500
-19,200
-18,800
-16,200
-8,100
-7,400
-4,500
-4,000
-2,200
-1,300
-35,000 -30,000 -25,000 -20,000 -15,000 -10,000 -5,000 0
Leisure & Hospitality
Educational & Health Services
Manufacturing
Trade, Transportation & Utilities
Professional & Business…
Government
Other Services
Mining, Logging & Construction
Financial Activities
Information
Job growth*
Historical employment Job growth by sector*
Employment by industry Industrial employment*
* Represents 12-month change in employment. All charts represent economic conditions through June 2020, which was the latest data available at the time of publishing this report.
© 2020 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.
-20.0%
-15.0%
-10.0%
-5.0%
0.0%
5.0%
2015 2016 2017 2018 2019 2020
Louisville U.S.

8. Andrew Batson
Vice President, Director of Research
+1 216 937 4374
andrew.batson@am.jll.com
Alex Westcott
Research Analyst
+1 502 394 2504
alex.westcott@am.jll.com
About JLL
JLL (NYSE: JLL) is a leading professional services firm that
specializes in real estate and investment management. Our vision
is to reimagine the world of real estate, creating rewarding
opportunities and amazing spaces where people can achieve
their ambitions. In doing so, we will build a better tomorrow for
our clients, our people and our communities. JLL is a Fortune 500
company with annual revenue of $16.3 billion, operations in over
80 countries and a global workforce of more than 93,000 as of
September 30, 2019. JLL is the brand name, and a registered
trademark, of Jones Lang LaSalle Incorporated. For further
information, visit jll.com.
About JLL Research
JLL’s research team delivers intelligence, analysis and insight
through market-leading reports and services that illuminate
today’s commercial real estate dynamics and identify tomorrow’s
challenges and opportunities. Our more than 400 global research
professionals track and analyze economic and property trends
and forecast future conditions in over 60 countries, producing
unrivalled local and global perspectives. Our research and
expertise, fueled by real-time information and innovative thinking
around the world, creates a competitive advantage for our clients
and drives successful strategies and optimal real estate decisions.
© 2020 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.