Downtown Louisville, KY, is struggling with a familiar problem — work-from-home trends mean fewer workers are commuting to offices. To fight back, the city has unveiled a new incentive program to entice large office users to relocate or expand in the district.
The Downtown Tenant Improvement Program aims to bring in office users by dangling a subsidy of up to $30 per square foot for physical improvements, including construction materials and permanent fixtures.
“Whenever you come into a new space, you’ve got to do tenant improvements,” says Deputy Mayor Pat Mulloy. “You’ve got to move the drywall. You’ve got to paint. You’ve got to put down new carpet.”
Businesses simply relocating within the district wouldn’t qualify, but those moving downtown from another part of Louisville would.
Councilman Anthony Piagentini raised a familiar concern about incentives: He hopes the money goes to tenants that are new to the market, rather than simply poaching within the metro area.
“Hopefully we see a complete net gain across the city, not just shifting chairs in the same room,” he said.
In addition to a subsidy for physical improvements, new tenants will receive discounted parking rates.
More on Louisvilles’s efforts to attract new office tenants appears in the March issue of Downtown Idea Exchange newsletter. Click to learn more about Downtown Idea Exchange and other resources for revitalizing downtowns and commercial corridors.