Real Estate Trends 2009 the Data Published in Real Estate Trends Is Compiled Contents Every Six Months by the Citybusiness Research Department
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RE_trends09_COVERS 11/2/09 10:35 AM Page 991 RE_trends09_COVERS 11/2/09 10:35 AM Page 992 ELMWOOD OAKS As solid as the historic Oaks, this is your new location for your business. Elmwood Oaks office park consist of four ground level office buildings in a picturesque location surrounded by historic oaks. Located on Evans Road, between Jefferson Highway and the river, this is an ideal location for any business looking for a great environment and close proxmity to Jefferson, Orleans and St.Charles Parish. ~~~~~~~~~~~~~~~~~~~~~ Elmwood Oaks 201 Evans Road Harahan, LA 70123 ~~~~~~~~~~~~~~~~~~~~~ For Appointments: Contact Penny Duet 504-330-8962 RE_trends2009 11/2/09 2:17 PM Page 1 RE_trends2009 11/2/09 11:17 AM Page 2 Real Estate Trends 2009 The data published in Real Estate Trends is compiled Contents every six months by the CityBusiness research department. Area coverage map Lists Published by the NOPG LLC Central Business Commercial leasing 111 Veterans Memorial Blvd., District . .4 . 11 companies . .34 Suite 1440, Metairie, La. 70005 504-834-9292; Fax: 504-837-2258. Center City . .12 . 14 Commercial property managers . .36 Publisher and president: D. Mark Singletary Eastern New Orleans Associate Publisher: Lisa Blossman and Chalmette . .15 . 17 Flex space . .38 Managing Editor: Greg LaRose News Editor: Christian Moises Kenner and Shopping centers . .40 Associate Editor: Autumn C. Giusti St. Charles Parish . .18 . 20 Business parks . .45 Art Director: Alex Borges Market Researcher: Jennifer Nall Metairie and Warehouse space . .47 Account Executives: Liz Baldini, Monique Brignac, East Jefferson . .20 . 26 Jeanne Farrell, Cassie Foreman, Coco Evans Judd North Shore . .27 . 31 Production Manager: Julie Bernard West Bank . .31 . 32 On the cover: Bryan Burns III, senior vice president for Transwestern, stands in front of 400 Poydras Tower, which saw occupancy jump from 75 percent last year to 81 percent this year. Photo by Frank Aymami 2A New Orleans CityBusiness RE_trends2009 11/2/09 11:17 AM Page 3 COMMERCIAL INVESTMENT DIVISION OF THE NEW ORLEANS METROPOLITAN ASSOCIATION OF REALTORS® WISHES TO THANK ITS SPONSORS: SILVER SPONSORS BRONZE SPONSORS Bank of New Orleans Artigues Construction Co., Inc. Coldwell Banker Commercial Beth Cristina, LLC DIAMOND SPONSORS TEC REALTORS® Crescent Title, LLC Don Randon Real Estate Jack Stumpf & Associates, Inc. Criterium-Dormady Engineers Larry G. Schedler & Associates, Inc. Glen Johnston of Johnston Cross GOLD SPONSORS Louisiana REALTORS® Max J. Derbes, Inc. Merrill Lynch/Bryan McClendon First NBC Morgan Keegan & Company, Inc. & Edward Malone Stirling Properties, LLC Prudential Gardner, REALTORS® RE/MAX Commercial Brokers, Inc. Sher Garner Cahill Richter Klein & Hilbert, LLC Red Hot Properties Talbot Realty Group Sylvia Roy, CCIM THE STEEG LAW FIRM, LLC The Stevens Group, Inc. THE CID ACHIEVEMENT AWARDS BANQUET RECOGNIZES ITS TOP COMMERCIAL REAL ESTATE PRODUCERS OF 2008 1st Row (left to right): Sandy Preston, Frann Ryan, Meg Carrone CCIM, Rhonda Sharkawy, Kirsten Early CCIM, Judy Slack, Lucy Chun, Colleen Berthelot CCIM, SIOR 2nd Row: Andrea A. Huseman CCIM, Richard Juge CCIM, SIOR, CIPS, Beth Cristina, ALC Martin O. Miller III, Sandra Corrigan SIOR, Skip Weber CCIM 3rd Row: Bennett Davis CCIM, Steve Reisig CCIM, David Quinn SIOR 4th Row: Michael Wilkinson, Bobby Talbot CCIM, Bert Duvic CCIM, SIOR 5th Row: Mark Inman CCIM, Gerard Henry SIOR, Greg Riera, Ben Derbes, Schaffer Mickal Award Winners Not Pictured: James Barse CCIM, SIOR, Michael D’Amico, Duff Friend SIOR, Joe Gorman III, Trimble Green, Robert Hand, Keith Henry SIOR, Jennifer A. Lee CCIM, SIOR, Peter Lombardo, Dan Poulin CCIM, SIOR, Brian Rourke CCIM, SIOR, Larry G. Schedler CCIM, Barry Spizer CCIM RE_trends2009 11/2/09 11:17 AM Page 4 REAL ESTATE TRENDS 2009 Central Business District and Center City By Tommy Santora tainment venue. Dominion Tower has [email protected] been empty since the storm except for the Contributing Writer Louisiana State University Health Science Center Ambulatory Care Clinic on the photo by Frank Aymami he impressive start to the New Orleans ground floor. TSaints’ season has boosted the morale The Benson family plans to spend about of the community. Now an offshoot of Tom $12.5 million preparing the office space for Benson’s franchise is trying to boost the the state, plus another $21.7 million repair- city’s real estate market. ing the storm-damaged property. In the largest commercial real estate “Being a tenant in these buildings is an transaction since Hurricane Katrina, the opportunity for these companies to offer Benson family, through their company their employees a high quality of life through Zelia LLC, bought the 26-story Dominion their working experience,” said Saints Tower office building, the 400,000- Executive Vice President Rita Benson square-foot New Orleans Centre mall and a LeBlanc. “Based upon the demand we are 2,000-space parking garage from California experiencing, we are very confident that the real estate firm Hertz Investment Group for building will be fully leased before it opens $42.1 million. The office building is now following construction.” known as the Benson Tower. The Bensons could not have picked a As part of a long-term lease agreement better time to enter the downtown office to keep the Saints in New Orleans, the space market, as office occupancy rates in state has agreed to occupy more than half the Central Business District are at an all- of the office space in Benson Tower with time high, according to a third-quarter Bryan Burns III, senior vice president for Transwestern, 800 to 900 workers by July. Benson has report by Metairie-based Equity Office says commercial real estate in the Central Business District pledged $10.5 million to convert New Properties and leasing director Bruce is in a period of equilibrium between supply and demand. Orleans Centre into a sports and enter- Sossaman. TakeTake youryour businessbusiness REAL ESTATE lose p toto newnew The CityBusiness Real Estate CloseUp is 1340 Poydras sent to our subscribers every Friday. heights..heights.... Be the first to learn about the latest real estate news and information from the New Garage/ greater New Orleans region. Ground Floor Advertise on the Real Estate CloseUp– Retail Space we can help link you to your customers. Only three advertising positions are available on the Real Estate CloseUp. 1010 Common Secure your spot now! Realty 1, LLC For advertising information contact For Leasing Information LISA BLOSSMAN or a Property Tour 504-293-9226 • [email protected] Please Call Sandra Corrigan at (504) 566-1400 4A New Orleans CityBusiness RE_trends2009 11/2/09 11:17 AM Page 5 The market stats are very strong, “we are at a nice equilibrium of supply and demand, and the A Premier Location market is holding steady.” is Just the Beginning Bryan Burns III Transwestern senior vice president About 92 percent of premium commer- cial office space, or Class A, was listed as occupied at the end of the third quarter, up Energy Centre from 90 percent the same time a year ago, New Orleans, Louisiana while 87 percent of Class B office space is occupied, up from the 86 percent in the second quarter of 2009. Average downtown rents are holding This premier address in the steady at $18 per square foot for Class A, while Class B rents average $14.50 per heart of New Orleans’ CBD is square foot. Bryan Burns III, senior vice president an ideal location for business. for Transwestern, a private national com- mercial real estate company, said his com- pany’s three Class A office buildings in Energy Centre features a downtown New Orleans have all seen state-of-the-art design with increased occupancy with 400 Poydras Tower jumping from 75 percent last year a superior technological to 81 percent this year; 650 Poydras St. increasing from 75 percent to 85 percent; operating system, and is in and 909 Poydras going from 85 percent to 97 percent. walking distance to the city’s The U.S. Government General Services Administration recently signed a lease to most sought after destinations. move from the federal building at 500 Poydras St. to 650 Poydras St. and occupy 65,000 square feet. Burns said they are still working on a timeframe, but it should take place in 2010. “The market stats are very strong, we are at a nice equilibrium of supply and demand, and the market is holding steady,” Burns said. “There are a lot of Discover good things happening downtown, and the Benson Tower transaction will help Energy Centre. with real positive development for the area around the Superdome.” But there are still several unoccupied Call Meg Carrone office buildings that haven’t reopened, including Chevron’s former headquarters at Corporate Realty, at 935 Gravier St. 504.569.2052 “You would need $25 to $30 per square foot of rent to make construction of a new building worthwhile, and we’re not seeing that kind of market come online,” Sossaman said. “Chevron was built as a single-tenant building, and you really need an owner/user type situation © 2009 Behringer Harvard like we almost had with City Hall to war- rant renovation or construction.”• Real Estate Trends Fall 2009 5A RE_trends2009 11/2/09 2:10 PM Page 6 Central Business District (ranked by total leaseable square feet) Largest Total Quoted block of Leasing agent leaseable rent space Leasing 2009 Building name square Percent rate Common Year built/ available company Rank Address feet occupied high space renovated Floors (sq. feet) Availability Phone One Shell Square 1,256,991 96 $17 17 1972/1998/ 51 24,000 December Russell 1 701 Poydras St. percent percent 2008 Marchand CB Richard Ellis New Orleans 323-7000 Place St. Charles 1,004,484 99 $20 15 1985/ 52 25,000 1/1/10 Bennett K.