Recruit professional services that utilize vacant office space.
According to several industry professionals in Lexington, there is a surplus of vacant professional office space. Reviewing NAI Isaac’s 2017 Market Report, the vacancy rate for office space is around 12%, with over a million square feet of available space throughout the urban service area. This is a significantly higher vacant rate than either industrial or retail. Market trends indicate a change in the demands for office space that utilizes less square footage per employee. Many of Lexington’s existing office users are likely consolidating space faster than new businesses are being found to absorb that space. This market correction is likely to continue for the next few years. In the meantime, Lexington should look to find new types of uses that can share some of that space, as well as seek to modify some of the square footage to other uses that might be complementary to the existing businesses.
- Study the efficacy of the Professional Office zone, looking for ordinance revisions aimed at reducing vacancy rate.