2012 Global Market report - NAI Global

Baton Rouge, Louisiana
Lake Charles, Louisiana
Contact
NAI Latter & Blum
+1 225 295 0800
Metropolitan Area
Economic Overview
2011
Population
2016 Estimated
Population
Employment
Population
Household
Average Income
Median
Household Income
818,694
883,222
411,425
$65,989
$49,076
New developments like the $357 million casino and numerous
expansions in the petro chemical industry along the Mississippi
River have continued to keep Baton Rouge afloat through the
recession. Those factors coupled with robust healthcare and
education industries will keep the Baton Rouge MSA
population increasing as non-farm jobs are expected to grow
modestly through 2013.
The industrial market has been one of the bright spots with
petro chemical plants like Westlake Chemical, Georgia
Pacific, Honeywell and Formosa Plastics expanding and
others like Nucor building a new plant along the Mississippi
River. Bulk warehouse seems to maintain a higher vacancy
although the stand alone buildings between 8,000 to
40,000 SF have had resurgence in demand.
Office remains one of the weaker sectors with an MSA
vacancy rate for both Class A and Class B properties dipping
back to 2003 levels or 17%. Several large blocks of space
have been leased recently due to the engineering demand
levied by new plant business and privatization of some state
agencies. Medical has been the only new construction with
local hospitals like Our Lady of the Lake and Baton Rouge
General announcing expansions in 2011.
Power Centers and large anchored centers are performing
relatively well while the smaller neighborhood centers that
suffered so much in 2009 and 2010 are beginning to back
fill some of those vacancies. The casino will be a big boost
to Baton Rouge as well as infill and re-development projects
which are starting to receive funding and finally break
ground.
The apartment sector has remained quite strong with Class
A vacancies less than 5% throughout the recession.
Investment grade sales flirted with the 7% cap rate range
and outside investors have taken a strong interest in Baton
Rouge and its projected future growth. Student housing
around Louisiana State University has been very active both
on the development and purchasing sides with new
developments fairing very well thus far.
Contact
NAI Lake Charles
+1 337 310 7333
Metropolitan Area
Economic Overview
2011
Population
2016 Estimated
Population
Employment
Population
Household
Average Income
Median
Household Income
202,789
215,575
99,693
$62,247
$45,917
Located between Houston and New Orleans, in the far
southwestern corner of Louisiana, Lake Charles is the fifth
largest Metropolitan Statistical Area in Louisiana, comprising
two parishes; Calcasieu and Cameron. The MSA population
is approximately 195,000. Lake Charles is dominated by
three key industries; petrochemical (Citgo, Conoco, PPG,
Westlake Chemical, SASOL and Cameron LNG to name a
few), casino gaming and aircraft repair at Chennault
Industrial Airpark (Northrop Grumman and Aeroframe).
Regional economist Dr. Loren Scott projects the Lake
Charles MSA will be the fastest growing in the state over
2012 and 2013 largely due to a remarkable $10 to $20
billion in new construction. What is behind this? According
to Dr. Scott, the answer is that this region is poised for a
run of construction projects that exceed any previous
record for the southwestern part of the state. Among these
projects are Cheniere Energy, Leucadia, Mojito Pointe,
Sasol, IFG, Lake Charles Memorial Hospital and a hangar
at Chennault Airkpark. Cheniere Energy has obtained
approval to convert its LNG import terminal to an export
terminal. The construction of this $6.5 billion liquefaction
plan is set to start in January 2012.
Leucadia plans to pull the trigger on its $2.2 billion
synthetic natural gas plant in early 2012. Mojito Pointe
plans to open its 400 room hotel and casino in early 2013.
Sasol has a $175 million expansion project underway that
is slated to be finished in mid 2013. IFG is constructing
the first Greenfield grain elevator in the US in the last
25 years. IFG will spend $59.5 million on Phase 1 of this
project and plans to spend another $50 million in Phase
II. Lake Charles Memorial Hospital has a $20 million
expansion underway that it slated to be completed in
mid 2012.
Recently, Governor Jindal announced sizeable state funding
for a new $18.5 million hangar at Chennault Airpark. This
enormous increase in construction spending represents a
huge injection of funds into the MSA’s economy and means
significant job creation. Scott projects an increase of
2,500 jobs in 2012 and 2,700 jobs in 2013 for the Lake
Charles MSA.
Total Population
Median Age
33
Total Population
Median Age
35
Baton Rouge At A Glance
(Rent/SF/YR) low High effective avg. Vacancy
doWntoWn offIce
New Construction (AAA)
Class A (Prime)
Class B (Secondary)
suburban offIce
New Construction (AAA)
Class A (Prime)
Class B (Secondary)
IndustrIal
$
$
$
$
$
23.00
20.00
13.00
N/A
18.00
12.00
$
$
$
$
$
28.00
23.00
17.00
N/A
22.00
16.00
$ 25.00
$ 22.00
$ 15.45
N/A
$ 19.50
$ 14.25
15.00%
20.00%
33.00%
N/A
15.00%
26.00%
Bulk Warehouse
Manufacturing
High Tech/R&D
retaIl
$ 3.00
N/A
N/A
$ 5.15
N/A
N/A
$ 4.00
N/A
N/A
15.10%
N/A
N/A
Downtown
Neighborhood Service Centers
Community Power Center
Regional Malls
$
$
$
$
12.00
8.00
21.00
12.00
$
$
$
$
24.00
22.00
30.00
80.00
$ 16.00
$ 15.00
$ 25.00
$ 35.00
6.00%
15.00%
4.00%
N/A
deVeloPment land Low/Acre High/Acre
Office in CBD
$ 900,000.00 $ 1,500,000.00
Land in Office Parks
Land in Industrial Parks
Office/Industrial Land - Non-park
$
$
$
180,000.00
100,000.00
80,000.00
$
$
$
350,000.00
260,000.00
350,000.00
Retail/Commercial Land
$ 350,000.00 $ 1,250,000.00
Residential
$ 10,000.00 $ 50,000.00
Lake Charles At A Glance
(Rent/SF/YR) low High effective avg. Vacancy
doWntoWn offIce
New Construction (AAA)
Class A (Prime)
Class B (Secondary)
suburban offIce
New Construction (AAA)
Class A (Prime)
Class B (Secondary)
IndustrIal
$
$
$
N/A
12.00
12.00
N/A
N/A
11.00
$
$
$
N/A
16.00
15.00
N/A
N/A
16.00
N/A
$ 14.00
$ 13.00
N/A
N/A
$ 14.00
N/A
25.00%
15.00%
N/A
N/A
10.00%
Bulk Warehouse
Manufacturing
High Tech/R&D
retaIl
Downtown
Neighborhood Service Centers
$ 2.00
N/A
N/A
N/A
N/A
$ 4.00
N/A
N/A
N/A
N/A
$ 3.00
N/A
N/A
N/A
N/A
5.00%
N/A
N/A
N/A
N/A
Sub Regional Centers
Regional Malls
$
$
8.00
20.00
$
$
26.00
30.00
$ 15.00
$ 25.00
15.00%
10.00%
deVeloPment land Low/Acre High/Acre
Office in CBD
Land in Office Parks
Land in Industrial Parks
Office/Industrial Land - Non-park
$
$
$
300,000.00
N/A
45,000.00
60,000.00
$
$
$
450,000.00
N/A
135,000.00
150,000.00
Retail/Commercial Land
$ 200,000.00 $ 1,000,000.00
Residential
$ 45,000.00 $ 350,000.00
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