Calculate cap rates and net operating income for commercial properties in Kentucky. Compare your results against Kentucky's secondary market benchmarks sourced from CBRE H2 2025.
Louisville is a major logistics hub anchored by UPS's Worldport (the world's largest automated package sorting facility at Louisville Muhammad Ali International Airport). This drives exceptional industrial demand. Toyota and Ford manufacturing drive automotive supply chain industrial in the Bluegrass region. Healthcare is a major economic driver (Humana, Norton Healthcare HQ).
| Property Type | Typical Low % | Typical High % |
|---|---|---|
| Multifamily | 5.5% | 7.5% |
| Industrial | 5.5% | 7.5% |
| Retail | 6.0% | 8.0% |
| Office | 7.0% | 9.5% |
Benchmarks sourced from CBRE H2 2025 Cap Rate Survey, JP Morgan, Matthews, and Cushman & Wakefield market data. Ranges represent typical stabilized assets — actual rates vary by asset quality, location, and market conditions.
Kentucky cap rates range from 5.5–7.5% for multifamily and industrial, 6.0–8.0% for retail, and 7.0–9.5% for office. Louisville's logistics market (driven by UPS Worldport) can see industrial rates toward the lower end of this range for prime logistics facilities.
UPS's Worldport at Louisville Muhammad Ali International Airport is the world's largest automated hub and processes approximately 1.5 million packages per night. Combined with Amazon Air's hub at Rockcastle County and strong highway infrastructure, Louisville has become a top-tier national logistics market that attracts institutional industrial investment.
Beyond logistics, Kentucky's CRE is driven by automotive manufacturing (Toyota Georgetown, Ford Louisville plants), bourbon distilling (tourism and industrial production facilities), healthcare systems in Louisville and Lexington, and horse racing/equestrian businesses. Ford's Blue Oval SK battery manufacturing plant in Hardin County represents one of the largest industrial investments in state history.
This tool is for informational and educational reference only and does not constitute real estate investment advice. Cap rate benchmarks are estimates based on published industry surveys and may not reflect current conditions in your specific market, submarket, or asset class. Actual cap rates vary significantly based on property condition, location, tenant quality, lease terms, and local market dynamics. Always consult a licensed commercial real estate broker, appraiser, or investment advisor before making real estate investment decisions.