Even with robust leasing activity this year, 22.8% of office space in Louisville’s central business district sits vacant, according to data from CBRE. That’s 1.8 million square feet spread across facilities that were built for a different version of how people work.
The Downtown Louisville Building Conversion Program is an effort to do something about it. Funded by the state and the administered by the city, the program provides gap financing for converting under-utilized office space for residential, hospitality, entertainment and mixed uses.
Created in 2025, the program won’t change the downtown skyline, but it has generated a pair of adaptive-reuse and renovation projects in downtown Louisville, and it could do more over the next two years.
As of mid-2026, two projects were funded and in motion. While the initial application window has closed, Louisville Mayor Craig Greenberg indicated in April 2026 that Metro Government had received 19 applications to the program – of which two have moved forward and foru more are still being considered for approval.
Why This Is Happening
Across the nation, demand for office space dropped precipitously throughout the COVID pandemic and has never fully recovered. Office-to-residential conversion has emerged as one of the more common policy responses—a way to put underutilized commercial space to productive use while also adding housing supply.
Kentucky’s General Assembly allocated $100 million for downtown Louisville revitalization in its 2025-26 budget, and the Downtown Louisville Building Conversion Program is one of the mechanisms built around that funding.
About The Program
Eligible projects must be in the central business district – defined as the area bounded by the Ohio River, York Street, I-65, and 10th Street. The program covers adaptive reuse of existing buildings for purposes that bring people downtown and generate activity. It does not cover new construction, and explicitly does not apply to data centers and storage facilities.
The program is designed as a last resort to fill funding gaps for projects that would otherwise not come to fruition. Approval is dependent on showing that a full financing package is in place except for a specific gap that can’t otherwise be filled.
Other program details include:
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Eligible projects must be for adaptive reuse of an existing building.
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It does not apply to new construction, projects that are already underway or the purchase of real property.
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Preference is given to projects that are renovating all or most of a building.
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Preference is also given to residential components, with extra consideration to those offering affordable units.
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Awards are based on the square footage to be converted and positive impact on downtown revitalization.
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Construction must begin within 18 months of program approval with completion expected within 36 months.
Current projects
Two projects have been approved and announced so far. The first is the former Jefferson County Fiscal Court Building at 531 Court Place. Local development firm Weyland Ventures is converting the 10-story art deco office building into 106 apartments. The unit mix will include studio, one- and two-bedroom apartments, live-work units and ADA-accessible units. A third of the units will qualify as affordable housing. The $28 million project received $3 million in funding from the downtown conversion program. It’s scheduled for completion in late 2027.
The second is the 5-story historic Hubbuch & Co. building at 324 W. Main St. It received $1.5 million in funding from the downtown conversion program for the $11.8 million conversion of the top four floors into 14 studio, one- and two-bedroom apartments. In accordance with program requirements, two units will be designated as affordable housing. The project, led by Louisville-based Wilkinson Builders , also includes improvements to the first-floor retail space.
While it’s a much smaller project than the Fiscal Court Building, its approval signals that the program is open to projects of varying sizes.
Complications of Adaptive Reuse
Converting office floors into residential units usually involves substantial retrofitting of plumbing and electrical; open office floor plans weren’t built to be carved into a dozen units, each needing its own kitchen and bath. It also means fire and life-safety system upgrades triggered by the change in occupancy classification from commercial to residential. Structural assessments, selective demolition and coordination between trades in occupied or constrained spaces are all part of the picture.
Historic buildings add another layer of complexity. The Hubbuch Building will require working with existing facades and floor plates, matching materials and finishes where required for preservation compliance, and navigating any applicable historic tax credit requirements that may be part of the financing. That’s specialized
Keeping Expectations in Check
One hundred twenty units funded so far, against 1.8 million square feet of vacant office space, is a small fraction of the total challenge. The downtown conversion program isn’t going to eliminate the central business district’s office glut. But it is generating activity and demonstrating the incremental benefit of office conversions at the local level.
For renovation contractors and specialized trades with experience in adaptive reuse, occupancy conversions, and historic structures, it’s also generating work that otherwise wouldn’t exist.
work that not every renovation contractor is set up for.
The firms likely to win such projects are the ones with occupancy-conversion experience, renovation-focused MEP subcontractor relationships, and some history with historic structures.
Best Supply offers competitive pricing, reliable delivery, and takeoff assistance for renovation and adaptive-reuse projects—so you don’t pay for anything you don’t need. See how we can help with your next project— request a quote here.
