Commercial real estate industry seeing increase

LEXINGTON, Ky. (WTVQ) – Those who have tried to buy a home during the pandemic know that apparently everyone is trying to do the same, but what about commercial real estate?

Many of the industries using this space were hit hard during the pandemic, but it appears that commercial real estate in central Kentucky is enjoying a boom of its own.

Al Isaac, president of the NAI Isaac commercial real estate agency in Lexington, said he saw an increase in commercial home purchases in 2020 and he does not see any decline in momentum.

“It really got a lot of steam, so business was actually pretty strong at the end of the year,” said Isaac. “The fact that interest rates were really low encouraged people that we were going to get through this. If I take advantage of these low interest rates now, I’ll be in a better position once we get out of it.”

Agave and Rye is one of those companies taking the opportunity.

“Our next step is to go downtown to handle that traction and reach the amount of people who believe in the brand we make,” said Nicholas Johnson, manager of the dining room.

The popular taco shop is located in Lexington – in the Fayette Mall parking lot. However, there are two free shops right next door.

Isaac says this could be the case for a while, but before the end of 2021 he expects these vacancies to decline – although it may not be in retail.

“We’re going to see an increase in office space demand because I think we’re well beyond the worst of the effects of COVID and then people can see how they need to operate to move forward,” said Isaac.

Although the hospitality industry has been badly hit, Isaac said the vacancy rate did not increase dramatically from one year to the next. In fact, new restaurants pop up almost every day.

Johnson said he was grateful to have weathered the storm.

“This is one we’ve all been through together and if we do it, never give up,” said Johnson.

“One of the roles I think everyone at the company had to play over the past 12 months is supportive and cheerleading,” said Isaac.

And he said he’s happy that local businesses are winning.

Isaac said office space and the industrial sector remained fairly consistent in vacancies over the past year. He added that rental rates have not changed significantly either.