2012 Global Market report - NAI Global

Monroe, Louisiana
New Orleans, Louisiana
Contact
NAI Faulk & Foster
+1 318 807 4666
Metropolitan Area
Economic Overview
2011
Population
2016 Estimated
Population
Employment
Population
Household
Average Income
Median
Household Income
Total Population
Median Age
198,975
206,094
92,620
$54,359
$38,861
36
The Northeast Louisiana Region has continued to grow
due in large part to ongoing efforts in business advocacy,
infrastructure development and workforce development.
This has resulted in slow but steady growth for the region’s
commercial real estate market both in number of
transactions as well as overall transaction values.
Commercial property values, as well as commercial lease
rates have shown no notable decreases over the last year.
Completed and ongoing infrastructure enhancements such
as the expansion of the Greater Ouachita Port as well as
the extension of interstate service roads will open up
additional development opportunities within the region. The
extension of the service roads will allow for both retail and
industrial expansion.
Monroe corporate headquartered CenturyLink’s recent
acquisition of Qwest Communications, resulting in
approximately 800 new direct jobs and will subsequently
create approximately 1,170 indirect jobs for a total
of 1,970 new jobs created over the next five years.
Acquisition of Qwest Communications will result in
CenturyLink being the largest Fortune 500 company
headquarted in Louisiana. Other companies making an
impact on the region by expanding and adding new jobs
are Gardner Denver Thomas as well as Con-Agra Lamb
Weston. Both companies investment in the region in
“bricks and mortar” as well as in the labor force have
allowed the region to continue to grow.
The recent $10.8 million capital investment by Angus
Chemical Company, a wholly owned subsidiary of Dow
Chemical Company, for modernizing its manufacturing
facility in the region is a positive sign of future growth for
the region. Another project that will bring commercial
real estate expansion opportunities is the new 700 acre
industrial park. The site is the first certified site in Northeast
Louisiana and is the largest development-ready site in
Louisiana.
Over the last few years the region has been focused
on the creation and maintenance of a business friendly
environment. These efforts have included building and
expanding infrastructure and the developing of a trained
and productive workforce. These efforts are ongoing and
the region is now beginning to experience and enjoy the
results of those efforts.
Contact
NAI Latter & Blum
+1 504 569 9300
Metropolitan Area
Economic Overview
2011
Population
2016 Estimated
Population
Employment
Population
Household
Average Income
Median
Household Income
Total Population
Median Age
1,195,638
1,222,948
591,961
$66,567
$50,659
36
2011 has been an exciting year in New Orleans as the city
continues it resurgence after the catastrophic levee
failures of 2005. A combination of new developments, a
unique local culture and a reviving tourism market have
kept the city somewhat insulated from the economic
problems that have surfaced nationally.
The office market remains resilient and stable, with
downtown Class A office space roughly 89% leased at
rates of $17 to $20/SF. The suburban market is at 90.6%
occupancy, with rates of $22 to $24/SF.
On the industrial side, there are currently 6,361,978 SF
available, which is to say that the demand of the post-
Katrina 2006 boom has abated.
Retail has been caught in the downturn being experienced
nationally, but there are more than a few national tenants
shopping around for space.
A general overview of the New Orleans lodging market has
to first begin with the reopening of the Hyatt Regency in
2011. Consequently, the supply of hotel rooms in the city
is now approximately equal to Pre-Katrina levels. Moreover,
convention center occupancy and attendance is also
currently at 2004/2005 levels with approximately
1,100,000 definite room nights on the books for 2011,
and an increase in RevPAR (TTM) as of October 2011
of approximately 9% year-over-year ($97 2011 vs. $89
2010).
New Orleans ranks third in the top 25 markets with respect
to “change in room value” in 2011 from 2010 (an increase
of $34,000 per room). New Orleans change in value per
room from 2010 to 2015 is expected to be approximately
$114,000 per room (US average is $85,000.) Lastly,
supply of new hotel product in the New Orleans market is
projected to increase less than 1% per annum from 2010
to 2015.
The area’s multifamily market has strengthened somewhat
over the past year and now stands at 90% occupancy. The
housing market is gradually improving.
Monroe 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
N/A
12.00
N/A
17.00
10.00
$
$
$
N/A
N/A
15.00
N/A
22.00
14.00
N/A
N/A
$ 13.50
N/A
$ 19.50
$ 12.00
N/A
N/A
N/A
N/A
N/A
N/A
Bulk Warehouse
Manufacturing
High Tech/R&D
retaIl
Downtown
$ 2.75
N/A
N/A
N/A
$ 4.50
N/A
N/A
N/A
$ 3.50
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Neighborhood Service Centers
Sub Regional Centers
Regional Malls
$
$
6.00
12.00
N/A
$
$
15.00
18.00
N/A
$ 10.50
$ 15.00
N/A
N/A
N/A
N/A
deVeloPment land Low/Acre High/Acre
Office in CBD
Land in Office Parks
Land in Industrial Parks
$
N/A
N/A
10,000.00 $
N/A
N/A
45,000.00
Office/Industrial Land - Non-park
Retail/Commercial Land
Residential
$
$
130,000.00
425,000.00
N/A
$ 450,000.00
$ 650,000.00
N/A
New Orleans 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
16.00
13.00
N/A
20.00
16.00
$
$
$
$
N/A
19.50
17.50
N/A
23.00
20.00
N/A
$ 17.95
$ 15.37
N/A
$ 22.30
$ 17.93
N/A
84.90%
78.00%
N/A
91.90%
86.80%
Bulk Warehouse
Manufacturing
High Tech/R&D
retaIl
$
$
2.00
2.50
N/A
$
$
4.00
6.50
N/A
$
$
3.75
4.50
N/A
N/A
15.00%
N/A
Downtown
Neighborhood Service Centers
Community Power Center
Regional Malls
$
$
$
$
15.00
12.00
15.00
20.00
$
$
$
$
40.00
18.00
29.00
62.50
$ 27.50
$ 15.00
$ 22.00
$ 41.25
1.00%
1.50%
2.10%
5.00%
deVeloPment land Low/Acre High/Acre
Office in CBD
$ 1,500,000.00 $ 6,500,000.00
Land in Office Parks
Land in Industrial Parks
Office/Industrial Land - Non-park
$
$
$
150,000.00
350,000.00
90,000.00
$
$
$
812,500.00
650,000.00
175,000.00
Retail/Commercial Land
$ 261,360.00 $ 2,178,000.00
Residential
$ 30,000.00 $ 650,000.00
2012 Global Market Report n www.naiglobal.com 103