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-- <br />~- , <br />i <br />Economic ~~ <br />Planning S}'sterns <br />r.,t~u~ rt~,~~r,tE• <br />P eyi<o i:nt L.nne>rrzic> <br />J,-rrrtd C~:<c Yn?icy <br />MEMORANDUM <br />To: Heather Balser and Sean McCartney, City of Louisville <br />From: Andy Knudtsen and Michael Gaughan, Economic & Planning Systems <br />Subject: Market Findings Summary, EPS #18820 <br />Date: October 17, 2008 <br />PROJECT OVERVIEW <br />Economic & Planning Systems was retained by City of Louisville to complete a market <br />analysis and evaluation of public financing potentials for the Highway 42 <br />redevelopment area. This memorandum focuses on EPS' findings relating to the <br />Highway 42 redevelopment area which were presented to the Louisville Redevelopment <br />Commission on September 8th. Methodology for the market analysis involved analyzing <br />market demand resulting from projected growth, evaluating recent development <br />projects in the vicinity of the study area, interviews with property owners as well as <br />developers active in the area, and assessing comparable projects in the larger market <br />area. <br />Office Market Findings <br />EPS research indicates the presence of a strong office market in the Downtown context. <br />However, the downtown market has been driven by users drawn to the amenity rich <br />environment, which is not currently present in the Highway 42 area. Existing rents <br />north of Highway 42 are relatively low, reflecting modest demand for office outside of <br />downto~~n. The relevant findings include: <br />^ Strong office demand in downtown, with approximately 62,000 square feet of leased <br />floor area in 2007 as well as new development that averaged 10,000 square feet per <br />year silue 2001. <br />^ Downtown office space currently achieves rents that are higher than retail space at <br />around $16 per square foot with rates for prime tenants and locations nearing $18 <br />per square foot. <br />d EtV V E R 96€i N.ELEY SA C R.A NlEkTft <br />_~. ,';ut~e;.',U K'ti~~tz; ~!0 }~li~7a;c~; )I. €, t`;-~illC) <br />;.n~_. _ _ ...ta ..,. .... [;e<: ~ fa:e~ to =,.a)_7~7"'i? <br />