Sewell

Over the course of 2003, the Lexington, Kentucky, office market experienced a slight increase in the demand for professional office premises and the demand appears to be increasing.

“Our vacancy rate for the suburban market has decreased from an average of 10.5 percent to 9.5 percent,” says Philip Sewell, president and CEO of Sewell Commercial Brokerage. “The vacancy rate for the central business district has decreased slightly from 13 percent to 12.5 percent. The main reason for the increase in occupancy levels is due to typical market absorption, which has occurred in our existing inventory. This is due to the very small amount of new pre-leased or speculative office development that was developed or constructed in 2002 and 2003.”

New office development has occurred in the south and southeast portions of the suburban market. Most of this product is being built because of the lack of office facilities in the immediate area around the new residential areas that have grown over the past 3 to 4 years.

“The largest residential growth we have experienced is in the Hamburg Pavilion area, which is also the new major retail area in Lexington with anchors such as Target, Meijer, Garden Ridge, Dick’s Sporting Goods and numerous national and regional retailers and restaurant concepts,” says Sewell.

The project that is going to do the most to alleviate the demand for office premises in this area is One Hamburg Place. This is the largest office development under construction in the Hamburg area. Miller-Valentine Group is developing the project; it will have a total of 75,000 rentable square feet.

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