LOUISVILLE, Ky. (WDRB) -- The 29-story 500W building at 5th and West Jefferson streets in downtown Louisville is the third-tallest building in the city. And on the inside, it's now the newest.

The decision to remodel was made prior to the COVID-19 pandemic stripping down a chunk of the downtown workforce, but years later, nearly $40 million in renovations transformed the building in the hopes of returning it to its days of full capacity.

"(The work) was very slow, and, you can imagine, during COVID it just pretty much was non-existent," said Ken Haskins, senior general manager of 500W.

Work-from-home was already on the rise in Louisville and nationally from 2010-19, according to Census data. About 5% of the workforce was home-based in 2019, up from about 3% a decade earlier. But then the COVID-19 pandemic hit in March 2020, forcing nearly everyone into that daily reality.

The vacancy rate for "Class A", or high-end office space like 500W, has surged in recent years following the pandemic and corporate consolidation. The Class A vacancy rate in the central business district (downtown) Louisville was 24.5% in the first quarter of 2023, from 23.9% at the same time a year ago, according to real estate brokerage JLL.

Made with Flourish

So in hopes of incentivizing companies to again set up shop in downtown Louisville, renovations to the 500W building were made with amenities in mind. A former bank and allergy clinic left, allowing for a coffee shop in the lobby and plenty of seating.

$4 million went into fixing the elevator banks, and more conference and meeting rooms were added with high-end features like microphone bars embedded in the ceiling.

Occupancy at the 500W building was at about 48% in the first quarter of 2023. But since the renovation, that has grown to 60%.

"Leases tend to take anywhere from six months to a year and a half, from beginning to signing," Haskins said. "So we have had a lot more interest in the building. We've had a lot more showings."

And companies moving in have a lot to see. On the fourth floor, there's a 24/7 community lounge with seating a granite bar, including private liquor lockers for the tenants. Across the hall, there's a 2,000-square-foot, 24-hour gym complete with Peloton bikes, weights, locker rooms and showers.

Do you like to play golf but don't really have a lot of time? Tenants can pop into the fourth floor on their lunch break to spend some time in a full state-of-the-art golf simulator. All they've got to do is bring their own clubs.

And outside is one of the main focal points, a 2,000-square-foot terrace above the fourth floor with plants and grasses overlooking. People can come out for lunch, special events or happy hour.

"We are the pinnacle for downtown Louisville," Haskins said.

The top five floors are all occupied by Baird Wealth Management. They alone put in $23 million in renovations for their offices.

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