Kentucky’s commercial real estate market is entering a new era—one shaped by mixed-use growth, rising demand for rental housing, and the steady expansion of service-oriented retail. Across Central Kentucky, from Danville to Lexington and beyond, developers are adapting to a changing landscape where community, convenience, and cash flow intersect.
Danville’s evolution as a regional hub
Danville’s commercial corridors—Hustonville Road, Perryville Road, and downtown Broadway—have quietly become prime ground for adaptive reuse and new construction projects. Investors are eyeing small-scale mixed-use properties that blend garage, apartment, and retail spaces into income-producing assets that serve both locals and visitors. KYCB has seen a measurable increase in buyer interest from out-of-state investors seeking cap rates between 7–9% in this corridor, often outperforming nearby metro markets.
Lexington and the suburban shift
Lexington’s infill opportunities remain strong, but growth is shifting outward. Surrounding towns—Nicholasville, Lancaster, Stanford—are seeing new multifamily and QSR developments driven by affordability and accessible infrastructure. Class A multifamily properties in these areas are now achieving rents of $1.80–$2.00 per square foot, and new construction costs continue to hover near $240 per foot depending on amenities.
Retail’s hybrid comeback
The “Main Street revival” is real. Smaller Kentucky downtowns are attracting coffee shops, medical offices, and boutique retailers that thrive on walkability and authenticity. With the right zoning, even legacy church and warehouse properties are finding new life as community-anchored developments—a trend KYCB has capitalized on with multiple adaptive reuse listings.
Outlook for 2026 and beyond
Expect a sustained appetite for small-format multifamily, commercial land near major connectors, and turnkey retail pads ready for national or regional tenants. Investors who secure positions now—especially in emerging corridors—stand to benefit from both rent appreciation and long-term equity growth as Central Kentucky’s economic gravity strengthens.
At KYCB Commercial, we’re helping clients identify and close these opportunities with precision, local insight, and strategic deal execution. Whether you’re expanding a portfolio or developing from the ground up, Central Kentucky is proving that smart growth doesn’t just happen in the big cities—it starts right here.
— Tanner Good
Principal Broker | KYCB Commercial
📍129 N 4th St, Danville KY 40422
📞 859-339-8105