RE_trends2013_COVERS_REtrends_covers 11/8/13 8:49 AM Page 991
2 0 1 3 REAL ESTATE TRENDS
MOVING MARKETS Metairie, CBD tenant battle rests on parking perks; other markets see supply, demand shifts
INSIDE North Shore builds to meet high-end office demand Page 25 Wetlands costs curb West Bank development Page 29 RE_trends2013_COVERS_REtrends_covers 11/8/13 8:49 AM Page 992
Real Estate Strategies Delivered
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We leverage our experience and relationships to bring maximum bene t to your real estate transactions. Sealy brokers, who hold signi cant experience in industrial, o ce, retail, and land, provide superior service and deliver results. Sealy & Company 150 James Drive East, Suite 140 St. Rose, LA 70087 504.463.5600 | www.SEALYNwww.SEALYNET.comNET.com RE_trends2013_RE Trends 11/8/13 8:45 AM Page 1
REAL ESTATE TRENDS 2 0 1 3 INSIDE: AREA COVERAGE MAP
Central Business District 24
Center City 10
Eastern New Orleans and Chalmette 13 12
Kenner and St. Charles Parish 15 16
Metairie and East Jefferson 18 19
North Shore 25 26
West Bank 29 28
LISTS The COMMERCIAL INVESTMENT DIVISION Business/industrial campuses 31 of the New Orleans Metropolitan Association of REALTORS®
Flex space 32 congratulates its Achievement Award winners - Top Commercial Real Estate Producers of 2012 Commercial leasing companies 34 Commercial property managers 36 1st Row, Left to Right: Joe Gardner, Meg Carrone, CCIM, Shopping centers 38 Judy Slack, Kirsten Early, CCIM, Sandy Preston, Warehouse space 43 Sandra Corrigan, SIOR, Barry Spizer, CCIM
2nd Row: Ben Derbes, Skip Weber, CCIM, ON THE COVER Corporate Realty President Michael Siegel says Mark Inman, CCIM, Michael Wilkinson, Duff Friend, SIOR, established companies and startups alike are driving Steve Reisig, CCIM, Richard Juge, CCIM, SIOR demand for Central Business District office space. Photo by Susan Poag 3rd Row: Rob Spratt, CCIM, CRS, GRI, Rich Stone, CCIM, Paul Richard, Ryan Pearce, The data published in Real Estate Trends is compiled every six months by the Gaines Seaman, Bert Duvic, CCIM, SIOR, Matt Eaton CityBusiness research department.
Published by the NOPG LLC Other winners not pictured: 3445 North Causeway Blvd., Suite 901, Metairie, La. 70002 James Barse, CCIM, SIOR Joe Kramer 504-834-9292; Fax: 504-832-3534 Colleen Kuebel Berthelot, CCIM, SIOR Jennifer Lee, CCIM, SIOR Associate Publisher: Lisa Blossman Trimble Green Schaffer Mickal Editor: Greg LaRose Gerard Henry, SIOR Martin O. Miller III, CCIM Managing Editor: Jennifer Larino Art Director: Lisa Finnan Keith Henry, SIOR Dan Poulin, CCIM, SIOR Account Executives: Liz Baldini, Jennifer Forbes, Stephanie Hilferty David Quinn, SIOR Cassie Foreman, Coco Evans Judd Production Manager: Julie Bernard Lane Hindermann, GRI, CBR Rhonda Sharkawy Interim Market Researcher: Emily Jones Andrea Huseman, CCIM Bobby Talbot, CCIM www.nomarcid.org • 504.885.3200
Real EstateTrends 2013 1A RE_trends2013_RE Trends 11/8/13 8:45 AM Page 2
Michael Siegel, president and director of office leasing for Corporate Realty, expects the slow pace of new office CENTRAL construction in the Central Business District to keep supply and demand steady over the next five years. BUSINESS DISTRICT
By Mason Harrison Contributing Writer [email protected]
Corporate office space in the Central Business District remains a sought after commodity for established compa- nies and start-up businesses alike, demand that has dri- ven prices for premium units up near $20 per square foot. An assessment of the market released by Corporate
BY THE NUMBERS Class A occupancy Average rent* 1Q 86.64 percent $18.21 2Q 87.31 percent $18.30 3Q 87.46 percent $18.40 Class B occupancy Average rent* 1Q 67.58 percent $15.75 2Q 65.58 percent $16.04 3Q 66.46 percent $15.88 PHOTO BY SUSAN POAG Source: Bruce Sossaman, Corporate Realty *Per square foot Select Properties, Ltd.
New Orleans Metro Area Properties Office Buildings 3421 Office Tower 3421 N. Causeway Blvd., Met. Medical Plaza I & II 3901 Houma Blvd., Met. Riverside I & II 6660 and 6620 Riverside Dr., Met. Residential River Vieux Terrace Condominiums 520 St. Philip St., New Orleans 301 Tchoupitoulas Condominiums 301 Tchoupitoulas St., New Orleans Riverside Office Buildings I and II Causeway Highrise Retail 6660 and 6620 Riverside Dr., Metairie 3421 N. Causeway Blvd., Metairie The K-Mart Shopping Center Select Properties can fulfill your office space needs at one of our conveniently located, well-maintained 2840-2940 Veterans Memorial Blvd., Met. five office buildings in Metairie. Please allow our staff of qualified professionals (with CPM and CCIM The Forum credentials) to assist you in maximizing your office potential. Specializing in commercial real estate 3131 Veterans Blvd., Met. since 1982, Select Properties is an IREM Accredited Management Organization with offices in Metairie, Baton Rouge, and Lafayette. Call us today for leasing, sales, brokerage, asset management, construction and consulting.
ACCREDITED SELECT PROPERTIES, LTD. • 833-0044 CERTIFIED PROPERTY MANAGEMENT 6620 Riverside Drive • Suite 300 • Metairie, LA 70003 - 7109 MANAGER® ORGANIZATION®
For Professional Asset Management, Leasing & Sales Individual Members Also Offices and Properties in Baton Rouge & Lafayette
2A New Orleans CityBusiness • November 29, 2013 RE_trends2013_RE Trends 11/8/13 9:51 AM Page 3
Prime Office Space Immediately Available Realty in 2012 projected a stable market for office space. The report predicted Class A office space occupancy rates approaching 90 percent in coming years driven in part by the slow pace of new construction in the area. The Rault Building The 110 Veterans Building Rates for Class B are also expected to climb. Michael Siegel, president and director of office leasing for Corporate Realty, said those predictions hold true moving into 2014. He expects steady supply and demand for office space in the CBD over the next five years. “The one word I would use to describe the market for office space in the CBD is equilibri- um,” Siegel said. “If I could use two words, I would say equilibrium and optimism.” Projections are less rosy for older, non- Class A office buildings in the CBD, which 2400 Veterans Blvd. Kenner, LA 110 Veterans Blvd. Metairie, LA report average occupancy rates below 70 per- cent. Duff Friend, an agent with NAI Latter & Blum, noted that non-Class A space is still Locally Owned and Managed by Rault Resources Group priced fairly high compared to premium units, ranging from $14 to $17 per square For leasing inquiries call Jennifer Amedee at foot. Until the price gap increases, it will be tough to attract additional tenants, he said. 504.581.1314 “Demand would have to increase for Class A office space in order for those prices www.raultresources.com to rise high enough to make non-Class A office space more attractive,” Friend said. Experts predict the steady increase of out- Escape from the ordinary ... come visit our newly upgraded properties! side firms and start-up ventures seeking space near the city’s historic center could spark new office tower construction over the next decade. Yet there are hurdles to new development. “In general, there is a lack of land in the New Orleans area,” Siegel said. “New Orleans is surrounded by water, and there is limited developable land. In the CBD, we are blessed with lots of old, historic buildings which can- not be torn down. Therefore, new land in the CBD and in the Warehouse District is even more of a limited commodity.” 3925 N. I-10 Service Rd. 4300 S. I-10 Service Rd. Siegel added that the value of vacant land in Metairie Metairie the CBD has spiked in recent years as demand has recently increased from developers inter- ested in building new hotels, apartments, and garages — not necessarily office buildings. 2200 Veterans Blvd. Friend said the CBD market will continue to be characterized by its relative stability in Kenner coming years. “The market is healthy right now,” he says. “I’ve got no crystal ball, but I see no reason for that to change.”• Newly upgraded properties, atrium ofces, retail, warehouse space for lease and self storage space for rent.
3925 North I-10 Service Rd., Ste. 130 • Metairie, LA 70002 504.455.8644 www.preferredrealityinc.net
Real EstateTrends 2013 3A RE_trends2013_RE Trends 11/8/13 8:45 AM Page 4
MAP: Central Business District
INTERSTATE 10
S. Claiborne N. Claiborne
Clara S. Robertson N. Robertson Magnolia
9 Tulane S. Villere N. Villere S. Robertson 11 CANAL SUPERDOME Freret LaSalle Marais
7 Gravier LaSalle Treme Iberville
10 Cleveland
S. Saratoga Crozat Perdido
13 ELK PLACE BASIN S. Liberty
POYDRAS N. Rampart
Julia LOYOLA 8 Gravier
d University Pl.
ro 16 Burgundy Gi
3 Union 14
S. Rampart Julia LOYOLA O’Keefe Baronne Dauphine 6 Penn 26
S. Rampart CANAL Baronne Bourbon O’Keefe Carroll 21
24
Girod Common Carondelet 2 Royal
Julia 19 Exchange Alley Baronne Lafayette 1 15 Chartres Baronne Howard PONTCHARTRAIN EXPRESSWAY Carondelet
St. Charles 12 Decatur
Carondelet Julia Picayune Pl.
20 Natchez Magazine Joseph
23 Camp POYDRAS St. Charles Church 5 Cir 22 18 e c
e l e CANAL St. Charles L 17 Tchoupitoulas 4
Camp Constance
Magazine Notre Dame Notre
Julia 25
Howard
Joseph Poeyfarre South Peters Ferry Tchoupitoulas
Commerce Fulton
Convention Center Boulevard
Mississippi River Riverwalk
4A New Orleans CityBusiness • November 29, 2013 RE_trends2013_RE Trends 11/8/13 8:45 AM Page 5
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One Shell Square F The skyline doesn't liee: One Shell Square is the iconic office o building in New Orleans' Centtral Business District. Located on thecornerofPoydrasStreetandSt. Charles Avenue, One Shell Squareepu tsyouat ththe center t of f ththe city's it 's b business i community it while hil anticipa ti i atingtillf all of your needs dthh through our on-siteit retail t il space, including a fitneess club, dry cleaning and tailoring, copying and imaging, computer servrvvice, postage and delivery,andsund dries in addition to several restaurantts. Why work in it when you can worrk above it? ElizabethE L. Hughes 504-323-700 00, [email protected] 701 Poydrass Street, Suite 3870, New Orleans, LA 70139 • www.oneshellsquare.coom
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400 Poydras Tower is a striking black granite office tower strategically located in the New Orleans Central Business District at the intersection of Poydras and Magazine. This modern 32-story office tower features F more than 620,000 sf of office space with excellent views in all directions, including the Mississippi River, French Quarter, Warehouse District and the CBD skyline. The in-building parking and the adjacent 601 Tchoupitoulas Garage combine to provide perhaps the best parking capacity in the CBD. Prestigious location, convenient access, excellent views and ample parking are just a few reasons your business will be well served at 400 Poydras Tower.
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1515 Poydras is a 27 story Class A office tower featuring a dramatic main lobby and covered courtyard four stories high. H Location: Landmark presence across from the Superdome offering unsurpassed access to I-10. Parking: Over 500 spaces in the building and 700 auxiliary spaces allows for a suburban parking ratio in the CBD. Amenities: Shuttle Van, Restaurants, Conference Room TOP 3 FLOORS AVAILABLE FOR UP TO 60,000 SQUARE FEET OF CONTIGUOUS SPACE. Suites of various sizes are ready for occupancy.
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1615 Poydras • Freeport-McMoRan Building A distinctive curved design of green marble and reflective glass forms the 23 story 1615 Poydras Building. Located directly across from the Mercedes-Benz Superdome, 1615 F Poydras offers the easiest access to and from the interstate system of any office building in the CBD. Within walking distance of City Hall, civil district courts, hotels and the Superdome and its large parking garage. 1615 Poydras features an on-site restaurant, barbershop and dry cleaning delivery. As one of the only locally owned and operated Class A buildings in the CBD, the building’s experienced management team makes tenant satisfaction its highest pri- ority and provides some of the highest quality build-outs and finishes available. Great acces- sibility, excellent parking, and high quality all come together in the 1615 Poydras Building.
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is a 22 story Class A office tower featuring striking silver sawtooth bay windows that double the views. GG Landmark presence across from the Superdome offering unsurpassed access to I-10. Over 500 spaces in the building and 700 auxiliary spaces allows for a suburban parking ratio in the CBD. Shuttle Van, Restaurant, Conference Room, Sundry Shop Suites of various sizes are ready for occupancy.
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Exchange Centre New Orleans’ newest and most exciting office building in the CBD! Refurbished elevator lobbies and common area provide a handsome, inviting office environment. Unique amenities including fitness centre, with men’s FH and women’s locker rooms with showers, building conference centre, building training centre, ground floor restaurant/wine bar, data center, affordable parking options – and much more! Located in the Theatre District, adjacent to the Bio-Medical District in the fastest growing corridor of Downtown New Orleans. Joe Gorman, CCIM ∙ 504-733-7109 ∙ [email protected] 935 Gravier Street, Suite 1840, New Orleans, LA 70112 ∙ www.exchangecentre.net
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Lee West End Filmore Orleans Parish Jefferson Parish train Blvd. train Harrison Lake Pontchar I-10 I-610 ntilly Ge arconi Pontchartrain Expressway Wisner M Canal Blvd. City Park Esplanade St. Bernar Jefferson Parish Orleans Parish Canal Orleans d 7 Broad Tulane I-10 Jeff Davis t Earhar 11 ar W p t a sh Ram in 15 Claiborne gto n Basin Royal Fountainebleau Earhart Oak Poydras Carrollton T oledano 14 Loyola Claiborne13 Decatur Broadway Mar Claiborne tin Luther King 1 CCC 8 GNO Bridge Jackson 10 Freret Louisiana Jefferson Magazine Napoleon St. Charles 4 6 10A New Orleans CityBusiness • November 29, 2013 RE_trends2013_RE Trends 11/8/13 8:45 AM Page 11 !"#$"%&!'$( %)#*"+&,(&$-$).&.")/),."&/01)%"&2""$ 6-$). @)%4"/$&,.-8*&-2 @")/'#4&)4"#$ 31'.+'#4 .")/"),." 7"%8"#$ :1-$"+&%"#$ <")%&,1'.$= /9)8"&)>)'.),." @")/'#4&8-D9)#( 5++%"// /01)%"&2""$ -8819'"+ %)$"&;'4; %"#->)$"+ ?.--%/ A/0B&2""$C 7;-#" %-6-$7)&82* !"!#$%&'()*+)$,-+./+*0 92:8;*$<=+:>+*? 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L !"C!$%&'()*+)$,(- C./555 G#$12&32*( 4!0 !.0G 0 G/#55 @;A1:2B #.CD#CEC P-$Q;A$7=1; M F4+(8$G-H3$96*(6& CF/555 .5$12&32*( 4!. !.G!T"550 # "/505 7=1;$W*(2&1&+828 !E#$P;Y2&($W-$722$<:K>- "FCDCE"! <;YY'$Q):Y;( EN !I"J$F(<$98)&.6K C0/555 !55$12&32*( 4!G-#5 !."ET"55E " 5 Q):Y;($P2):('$Z&;=1 !F"5$,(-$@I)&:28$VK2- #"#D.G0C Real EstateTrends 2013 11A RE_trends2013_RE Trends 11/8/13 8:45 AM Page 12 !"#$"%&!'$( %)#*"+&,(&$-$).&.")/),."&/01)%"&2""$ 6-$). @)%4"/$&,.-8*&-2 @")/'#4&)4"#$ 31'.+'#4 .")/"),." 7"%8"#$ :1-$"+&%"#$ <")%&,1'.$= /9)8"&)>)'.),."&A/0B @")/'#4&8-D9)#( 5++%"// /01)%"&2""$ -8819'"+ %)$"&;'4; %"#->)$"+ ?.--%/ 2""$C 7;-#" 9&(23:2$;<=2(( !"#$%&'(%)*#'(*$"#+%, >':*2?$@&A$?"@@+&0'A*&7*# !-.000 /"$12342'* 5,0 #/8-7!008 , ,.000 F N:4D&2($U+$):2V2( EH :&+"&'B%<<*&0*#'C*#$+&%, !,.000 "0$12342'* 5!0 #/"-7!00-7!0#0 ! ##."00 %<31<3&*2$I2&(*A #00#$F C?*'DEE+F*<'12G2 K?=&3?$;&(123' EI #0"0$)+$U2BB23E<'$W&M:E #/.GG! #00$12342'* 5!- #/-G7!000 , 0 SD2$XBB:42E$#0"0 Q&3R=&A ,0-H,,00 !"#$%&'()(*+(,+-.$%&'(//+*0(,+-'12-'(,%)-'*$3%45(&*%$'6(7'/4%)*8-8',9'&2-'0%5/($*-7'&2-57-+)-7:'"$9'(88*&*%$7'%4'0%44-0&*%$7'72%;+8',-'7-$&'%$'0%5/($9 +-&&-42-(8'&%'<-7-(402='!-6'>4+-($7'?*&9@;7*$-77'!-67/(/-4='ABBC'!:'?(;7-6(9'@+)8:='D;*&-'EFG='H-&(*4*-='IFFFJ: MAP: Eastern New Orleans and Chalmette Discovery Blvd. Morrison Lake Pontchartrain Bullar I-10 Wright New Orleans d 3 Lakefront Airport Read Bundy Cr 1 Lake Forest Blvd. owder Dwyer Menteur Mayo 5 Chef Hayne Blvd. Michoud 7 Downman 8 6 Lakeshore 2 France Morrison 9 Dwyer Old Gentilly Hwy Intracoastal Drive Chef Menteur Almonaster Mississipi River Gulf Outlet Intracoastal Waterway I-10 I-610 Orleans Parish Paris Rd. St Bernard Parish Florida N. Claiborne Chalmette Poland St. Claude W Center . Judge Perez Mississippi River Jean Lafitte Friscoville 4 12A New Orleans CityBusiness • November 29, 2013 RE_trends2013_RE Trends 11/8/13 8:45 AM Page 13 PHOTO BY ASHLEY MERLIN Developer Wade Verges, standing outside one of his new developments at 7500 Bullard Ave., says the construction of a new hospital in eastern New Orleans could spur interest in medical office space. EASTERN NEW ORLEANS—CHALMETTE By Mason Harrison spin-off effect we’d hoped for.” soon. Spizer’s firm manages Torres Park Plaza, the Contributing Writer Verges said the new hospital could be the cata- only Class A office complex in Chalmette. [email protected] lyst that makes the area more attractive to business. “The price for new construction would put Office space in eastern New Orleans averages $12 rates way above market and you would price your- Eastern New Orleans and Chalmette have struggled to $14 per square foot, though he said that will like- self out of the market,” Spizer said. “There’s also to attract large corporate tenants in the eight years ly rise as more healthcare service companies eye the no demand for new properties.” after Hurricane Katrina uprooted many businesses area for growth in 2014. Spizer said the bulk of office space in in the area. But returning residents, upcoming retail “When the hospital gets up and running there Chalmette is concentrated in “one-off large resi- openings and the construction of a new hospital will be a huge service component that’s not in the dential homes” that have been converted for use make up the silver lining in the cloud that hangs East at the present time,” Verges said. “Different by one or two firms. He noted it’s hard to track over the market. firms will follow the hospital and locate in the area, demand for such space. Construction on a new Walmart Supercenter on but now much of what’s out here is located in trail- “Some of these homes, I’m sure, are really nice, Bullard Avenue is expected to wrap up next year, ers on job sites.” but a good portion of what’s out there along Judge with the store opening slated for mid-2014. Crews Verges added occupancy rates in the East hover Perez Drive is Class B or Class C properties,” have also started work on the $130 million New around 80 percent, though that rate “is really based Spizer said. “I’m not sure because these are not tra- Orleans East Hospital. The hospital is expected to on your definition of office space.” ditional office buildings and no one really follows open in the spring with 80 staffed beds. He noted that smaller start-up firms often their development.” Developer Wade Verges, who operates a leasing locate in flex space and don’t always show up in Spizer said that trend may reverse as Chalmette firm in eastern New Orleans, is prepared for a slow the numbers. When they are removed from the continues to repopulate. commercial real estate market until then. While the equation, the number of firms that have set up “You have a steady number of people moving new Walmart Supercenter will attract more foot- shop in the area appears lower. back to Chalmette and repopulating the area and traffic to the area, Verges noted it will take time for The office market recovery experienced in other the rebuilding of new government buildings and businesses to invest. parts of the region has also been slow to materialize retail and restaurant establishments is attracting the “Coming out here to visit the new establish- in Chalmette. return of those residents,” Spizer said. “These are ments opening up and being out here after open- Barry Spizer, managing partner at SRSA factors that will help the return of old businesses ing a new business yourself are two different Commercial Real Estate, said large-scale office devel- and the creation of new firms that will increase things,” Verges said. “We are not having the opment is still not in the cards for the area any time demand for office space in the future.”• Real EstateTrends 2013 13A RE_trends2013_RE Trends 11/8/13 8:45 AM Page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ew Orleans CityBusiness • November 29, 2013 RE_trends2013_RE Trends 11/8/13 8:45 AM Page 15 Don Borngesser, a Realtor with Coldwell Banker, and partner Tetyana Volosh, left, specialize in industrial sales and leasing. Borngesser says the lack of developable land in Kenner has kept demand for existing warehouse space stable. PHOTO BY TRACIE MORRIS SCHAEFER KENNER AND ST. CHARLES PARISH By Kerry Duff Allemand noted one of the have opted for one-year Contributing Writer draws for the company was BY THE NUMBERS renewals instead of three-year [email protected] the property’s relative prox- leases in recent years because imity to the Houma and Occupancy Average rent* of the economy and concern Regina Allemand says companies in search of New Orleans markets. 1Q 85.7 percent $18.13 for consumer confidence. industrial and warehouse space in the greater New Obtaining loans and gaps 2Q 85.05 percent $17.83 Demand in the Kenner Orleans area are increasingly searching for options in infrastructure remain the 3Q 83.71 percent $17.83 and St. Charles Parish area in St. Charles Parish. main obstacles for compa- Source: Bruce Sossaman, Corporate Realty is highest for Class A, light Allemand, a life-long St. Charles Parish resident nies interested in purchasing *Per square foot industrial buildings outfit- who has sold commercial real estate in the area for property in the area. ted with tractor trailer load- 22 years, said developable land is available, com- “The biggest hurdle for ing docks. mercial properties are selling and residential and buyers today is getting financing and having 20 per- Dan Poulin, senior regional director of Sealy & commercial building permits are up over last year. cent or more to put down to purchase,” she said. Co. in St. Rose, said companies seeking to build “St. Charles Parish has a lot to offer,” said “St. Charles also doesn’t have a paid fire department new are being forced out of the market to find space. Allemand, a Realtor with Gardner Realtors. “It’s a and that’s a big issue for some companies because it “We’re seeing people go to Hammond because centralized location between Houma and New keeps them from building in our area.” we’re running out of buildable industrial land that Orleans with great access to interstates, the bayou In Jefferson Parish, the Kenner commercial real is permitted and ready to go,” Poulin said. “One area, oil fields, waterways and the airport, and resi- estate market remains stable, said Don Borngesser, successful development went to Gonzales because dents enjoy a good school system and relaxed life.” an 81-year-old Realtor with Coldwell Banker who they couldn’t find a site to build a 250,000 square- Allemand has sold four commercial warehouse specializes in industrial sales and leasing. foot warehouse building.” and office buildings on both sides of the Borngesser has closed on more than 100 commer- Poulin noted the former BP refinery in Mississippi River in St. Charles Parish so far this cial deals in Kenner over the past decade. Destrehan presents an opportunity for devel- year with an average sale price at $115,000. Three “Kenner is running out of developable land, opable land, though the company hasn’t made it of the four buildings are being refurbished or torn and there’s very little new construction of office available for purchase. down to make way for new construction. buildings and warehouses,” Borngesser said. James Business Park in St. Rose, which boasts Allemand pointed to the Esperanza Business He noted annual rental rates have decreased 53 buildings on 200 acres and is managed by Sealy Park in Luling, a light industrial area, as an example from about $7.50 per square foot in 2009 to $6.50 & Co., also has 14 acres of developable land avail- of the type of growth the parish has seen in recent earlier this year. Rates have edged up to $6.75 per able in front of its property. years. Ice cream producer Blue Bell Creameries pur- square foot in recent months, he said. Poulin noted that the land is deed restricted to chased property there for $314,000 in August to Charlie Mullin, senior vice president and associate new office building construction, a market that’s far build a 92,000-square-foot distribution center. broker with Re/Max Commercial, said many tenants too costly to attract investment now.• Real EstateTrends 2013 15A RE_trends2013_RE Trends 11/8/13 8:45 AM Page 16 MAP: Kenner and St. Charles Parish 10 9 W. Esplanade Loyola Jefferson Parish St. Charles Parish I-10 Chateau Blvd. Veterans Blvd. 1 3 James Business Park 6 New Orleans 5 2 International Airport 8 Williams Blvd. 4 W. Metairie Blvd. 7 Kansas City Railroad Illinois Central RR U.S. 61 U.S. 61 (Airline) Jefferson Hw River Road Mississippi River y. 16A New Orleans CityBusiness • November 29, 2013 RE_trends2013_RE Trends 11/8/13 8:45 AM Page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eal EstateTrends 2013 17A RE_trends2013_RE Trends 11/8/13 8:45 AM Page 18 Jeff Cohn, a sales and leasing associate with Corporate Realty, says ample parking remains a key selling point for The Galleria PHOTO BY SUSAN POAG and other Jefferson Parish office towers in his portfolio. METAIRIE AND EAST JEFFERSON By Mason Harrison live in the greater New Orleans area,” Sossaman said. Contributing Writer Sossaman added tenants in the Metairie market BY THE NUMBERS [email protected] are able to secure three parking spaces per 1,000 square feet of leased office space. That compares Metairie The commercial real estate market in Metairie with an average of one parking space per 1,000 Class A occupancy Average rent* and much of eastern Jefferson Parish continues square feet leased in the Central Business District. 1Q 94.66 percent $23.31 to outpace the region and doesn’t show any signs That adds up for large corporate clients, he said. 2Q 94.94 percent $23.50 of slowing down. While the CBD market has gained ground in 3Q 95.19 percent $23.75 “The market is about as good as I have seen it terms of occupancy, local experts predict eastern Class B occupancy Average rent* in my 22 year career,” said Jeff Cohn, a sales and Jefferson Parish will maintain its spark. 1Q 90.07 percent $18.69 leasing associate with Corporate Realty. “The high occupancy rates in the CBD have 2Q 90.3 percent $18.54 “Occupancy is high, rates are as high as I have ever not yet affected Metairie,” Cohn said. “If it does, it 3Q 91.16 percent $18.37 seen, and activity remains strong.” will be slight.” Cohn said the market for new traditional office Cohn agreed that affordable parking remains a Elmwood buildings in Metairie is narrow. Rather future growth differentiating factor for the market. Occupancy Average rent* in the market rests with medical office buildings and “I recently did an analysis for an insurance com- 1Q 54.69 percent $19 other specialized commercial spaces, he said. pany with high density parking and it would have 2Q 49.77 percent $19.25 Experts note tenants continue to be drawn to the been more expensive to lease space downtown due 3Q 47.59 percent $19.38 area’s central location and the abundance of affordable to the cost of parking,” Cohn said. Source: Bruce Sossaman, Corporate Realty *Per square foot parking compared with downtown New Orleans. Experts say any potential drag on the Jefferson Bruce Sossaman, leasing director for Corporate Parish market from downtown New Orleans Realty, pointed to Smoothie King’s decision to appears to be years away. “We expect the Jefferson market to steadily relocate its headquarters from Covington to the Sossaman noted Class A office occupancy in continue to improve and tighten in 2014,” Lakeway Center in Metairie. The company cited Metairie is at 95 percent and Class B is on its heels at Sossaman said. the proximity to Louis Armstrong International 90 percent. Rates are at or above 90 percent in Kenner Cohn expects Class B lease rates, which range Airport as one reason behind the move. and Elmwood as well. Rental rates for Class A space in from $16 to $19 per square foot in Metairie, to expe- “The Metairie market is a convenient location for Metairie peaks at about $25 per square foot, while rience the most growth over the coming year, though employees commuting from just about anywhere they rates hover around $19 further into the parish. premium office units will remain the best performing.• 18A New Orleans CityBusiness • November 29, 2013 RE_trends2013_RE Trends 11/8/13 8:45 AM Page 19 MAP: Metairie and East Jefferson Metairie Lake Pontchartrain W. Esplanade 1 40 er 5 27 Pow 3 18 12 9 6 32 26 25 36 34 42 Bonnabel I-10 24 41 Dr. 35 Veterans Blvd. 19 4 Zenith 37 33 23 avid avid 29 17 D 8 2 I-610 31 W. Metairie Ave. 15 Clearview Pkwy Severn Metairie Rd. N. Arnoult Airline Dr. Transcontinental Causeway Earhart Exwy Orleans Parish RAILROAD Jefferson Parish 38 Citrus Jefferson Hwy 6 Jefferson Hwy S. Claiborne Hickory Ave. Hickory Mounes 30 21 13 14 s 16 d ar Wholesalers Pkwy Wholesalers Edw Plantation oler T Mississippi River Evans Brookhollow Harahan West Esplanade 11 22 10 7 y lt Clear Clearview Arnou 28 Veterans Blvd. I-10 39 Severn 20 Causeway Real EstateTrends 2013 19A RE_trends2013_RE Trends 11/8/13 8:45 AM Page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etairie CBD building at Causeway Blvd and Esplanade Ave offers sweeping views, N flexible floor plans, renovated common areas, elevators and lobbies, on-site management, ample parking, competitive rates and amenities such as The Caboose Restaurant and Regions Bank. Call Graham Little / Mac McMillan, CBC TEC at 504-566-1777 click here: 3535causeway.com 20A New Orleans CityBusiness • November 29, 2013 RE_trends2013_RE Trends 11/8/13 9:24 AM Page 21 !"#$%&%"'(')$*#'+",,"&*-. &$./"0'12'#-#$3'3"$*"$13"'*45$&"',""# C$&7"*# 13-;/'-, 9-#$3 *<$;" C"$*%.7'$7".# 65%30%.7 3"$*"$13" :"&;".# =5-#"0'&".# ?"$&'15%3#@ $A$%3$13" C"$*%.7';-G<$.2 800&"** *45$&"',""# -;;5<%"0 &$#"'>%7> &".-A$#"0 B3--&* D*4E',""#F :>-." 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Q)'3,+3#QACC('), :"6"&4';<$*" K%L%)3#RC'2% HM 5!J0#K%L%)3#ML%6 /:.77" -!#1%)2%3& 4786-J 7-/59500: J J."-5 M>>+2('&%> /"J?J50- ;+CC%%3#TA%P%C 84#"&.#$#"'88 Q%)&=%C+& NO ":":#K6#O?70#K%)L(2%#*+', :0.000 -"#1%)2%3& 4786J0 7-/095075 " ".5"0 ;+)1+)'&%#*%'C&V#O326 J/7?J00J K&%L%#*%(>(B ==0'>?'2,&@,&$#"';$&A K*KM#;+HH%)2('C#*%'C NH --0#W6#;+)1+)'&%#R')X#QCL,6 J/.:!: 8/#1%)2%3& 47- 7-8-95077 " /."0" N>&'&% /"7?5":" *+33(%#*6#*'AP%) E)'32(>#N6#TC(11(3B NN !"7%*$<';<$B$'8'9'<< J5.5"5 8J#1%)2%3& 47/6J0 7-8!97--5 " J.7J0 K%C%2&#R)+1%)&(%> "-07#Y+AH'#QCL,6 U(H(&%,#*%'C&V /""?00!! 22A New Orleans CityBusiness • November 29, 2013 RE_trends2013_RE Trends 11/8/13 8:45 AM Page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eterans at PRIME corner of Veterans Boulevard & Lake Villa Avenue is easily accessed from Esplanade, Clearview and Causeway. The property has great natural light from many large windows, ample free parking and pylon signage available. Call Graham Little / Mac McMillan, CBC TEC at 504-566-1777 click here: 4051veterans.com B.DD((7#VG(W(D $47()=7/7(#$ M()8Q(D.8 HM !4"4#':#$%"&#'()*+,(#-./0 1&3&&& "&(),(78 9"2 "5<5=>&"> > & B.)6.)/8(#-(/D8K#$7,: ;2"%;&&; B.DD((7#VG(W(D !A&&#-+05(3/@(#12+30+45 M()8Q(D.8 HN !>&&#-+0@(D/T(#X)+*( 1&3&&& 5!#6(),(78 9"2 "521=>&"& 1 >3>&< B.)6.)/8(#-(/D8K#$7,: ;2"%;&&; B.DD((7#VG(W(D !B!B#:;#/?#13*0; M()8Q(D.8 HO !5!5#F:#B/G?(L/K#MD*0: 1&3&&& 55#6(),(78 9"5 "5<"=>&&4 1 "3>&& B.)6.)/8(#-(/D8K#$7,: ;2"%;&&; YG0K#'D/,T C.2+=+/4/#<)(0+7#D4+.4#<(47() FA$#R/88()#Z#MDGC#$7,:= IP 2>1#EDCL..0#I/)T#MD*0: !234>5 2;#6(),(78 9"2 "521="552 > !3&&& -(/D8.)? ;45%51;> X/D8.7#U)G/[#$$$ E0L+7#-.LD(K E/54()#8#F)2/G X/D8.7#U)G/[#'): IQ >">"#F:#B/G?(L/K#MD*0: !;3&&& 5(),(78 9"4 "54;3#"5<;3#"5<23#>&&& > 2&& H/@7()#Z#U)G/[#B.: $7,: 2!&% !"#$%&%"'(')$*#'+",,"&*-. &$./"0'12'#-#$3'3"$*"$13"'*45$&"',""# C$&7"*# 13-;/'-, 9-#$3 *<$;" C"$*%.7'$7".# 65%30%.7 3"$*"$13" :"&;".# =5-#"0'&".# ?"$&'15%3#@ $A$%3$13" C"$*%.7';-G<$.2 800&"** *45$&"',""# -;;5<%"0 &$#"'>%7> &".-A$#"0 B3--&* D*4E',""#F :>-." <(-=.#.(#>?)@( HI !"!"#$%&%'()* 0123!4 "55#6%'7%)& 8"3/4 "9:9;155: 0 5 A'B6%'&C#D)%#E)7/ !"!"#$%&%'()*#+,-./ :F"G0!55 <(-=.#.(#>?)@( HH +,-#./,0&*#,1#23%'4/( 0"29!3 F3#6%'7%)& 8"0/4 "9F!;155: 1 "2:F" A'B6%'&C#D)%#E)7/ !155#H/#EG"5#H%'-=7%#IB(. :F"G0!55 L'%.%'=7K#M/#N?O&* HJ 56788#9114/%#+04:;4)< 052""! 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ew Orleans CityBusiness • November 29, 2013 RE_trends2013_RE Trends 11/8/13 8:46 AM Page 25 Kellie Osbon, co-owner of K2 Realty in Covington, says the North Shore is attracting more interest from companies searching for newer and larger commercial space. PHOTO BY JENNIFER LARINO NORTH SHORE By Kerry Duff have a few spots that size,” Osbon said. “One com- approximately 110 acres available for development Contributing Writer pany is planning to build their own 15,000-square- and already has wetland certificates. Phase one of the [email protected] foot building after a year, but they want to lease first 253-acre development opened in 2004 anchored by to make sure they’re investing in the right location.” Target, Belk Department Store and JC Penney. Demand for office space on the North Shore has yet Osbon sold 6 acres of industrial property on Brewster Commons at River Chase, a 240-unit to hit full stride, but that hasn’t stopped developers Louisiana Highway 50 in August to a local busi- multi-family development, opened in 2011 fol- from preparing for an anticipated need for higher- nessperson who owns and operates an auto detail lowed a year later by a Sam’s Club. end complexes. and body shop. She said the commercial sale was “We’re doing a good job providing for retailers Mac McMillan, a retail and office specialist with her biggest in a long time, due in part to the fact that interested in our market right now and we have Coldwell Banker TEC Realtors, said the North the property ran into few of the wetland-related per- plenty of developable land that could be office or Shore office market is very stable, with 80 to 85 mitting hurdles other St. Tammany Parish deals retail,” he said. percent average occupancy. Several new buildings have encountered. Abadie said River Chase is primed for Class A are expected to open in coming years that will fill a Chris Abadie, vice president of commercial bro- office space development, though he doesn’t expect noticeable gap in Class A office space, he said. kerage for Stirling Properties, said developers are new construction in that market to pick up for “The North Shore needs more Class A office required to map out any wetlands on the land they another two years. space, and it’s being planned now, but the rates will seek to develop and get their plans permitted prior Stirling Properties is also developing be expensive — $22 to $28 a square foot — because to starting construction. Tighter wetland permit Fremaux Town Center, a sizeable retail develop- there’s not a lot of it,” McMillan said. laws rolled out in 2012 increased land prices on the ment under construction in Slidell. Its first He noted the North Shore has the opportunity to North Shore and killed some developments. The phase, opening in March, is 95 percent leased. meet growing demand for special high-end ameni- permit process can take as long as two years. Retailers include Kohl’s, Dick’s Sporting Goods, ties, such as built-in Internet access, marble floors “The new laws make it more difficult to get a Michaels, Best Buy, Ulta and Panera Bread. and energy efficient windows and air conditioning. permit, so there’s a bigger barrier to entry for devel- Phase two, which will have a Dillard’s depart- Kellie Osbon, co-owner of K2 Realty in opment,” Abadie said. “It also makes construction ment store, will open in March 2015. Covington, said she has fielded calls recently from more expensive, which means higher rental rates to Abadie said the opening of Fremaux Town several Fortune 500 companies interested in locating offset increased costs. So properties that already Center will “be a game changer for Slidell,” draw- in the area. Recent requests are for as much as have wetland certificates have a distinct advantage ing activity away from North Shore Square Mall on 10,000 to 15,000 square feet of Class A office space. over property not delineated and mitigated.” the other side of the city. “We haven’t had anyone looking for that Stirling’s River Chase development at the intersec- “Retailers want to be where they can get higher amount of square footage in a long time, but we do tion of Interstate 12 and Highway 21 in Covington has sales,” Abadie said. “It’s all driven by demand.”• Real EstateTrends 2013 25A RE_trends2013_RE Trends 11/8/13 8:46 AM Page 26 MAP: North Shore River Rd. W. 21st St. U.S.190 Allen Rd. N. Lee Rd. Talisheek Rd. Military Rd. 6 West Causeway Approach Covington . Boston Ave. Abita Springs * Range Line Rd. 9 13 16 20 18 12 2 Hickory Ave. 1 N. Causeway Blvd. 4 * 19 * Covington Hwy. I-12 Abita Hwy. Abita U.S. Highway 190 West Causeway * 26 * 3 15 23 29 9 Approach I-5 10/11 U.S. Highway 190 Pine W 21 I-1 a 17 2 Fish Hatchery Rd. tts Rd 25 Highway 1088 8 N. Causeway Blvd. * 28 27 Florida Ave. . U.S. Davis Rd. 190 Military Rd. I-12 Mandeville 24 Rd. Joe St. U.S. 190 . Rd 14 Robert7 Lake Ave. 5 22 d. t. Thompson Rd. y R U.S 1 rt tS . 90 Bayou Libe Fron Old Spanish Trail Slidell LAKE PONTCHARTRAIN I-10 !"#$%&'%"#( #)*+(,&-.&$"$)/&/()0()-/(&012)#(&3(($ 425/,5*6 =2"$(, B)#6(0$&-/";+&"3 B()05*6&)6(*$ 7,,#(00 9"$)/&/()0()-/( :(#;(*$ #(*$&#)$( >()#&-25/$? 0<);(&)@)5/)-/(&C01D B()05*6&;"F<)*. 85$. 012)#(&3(($ ";;2<5(, %56% #(*"@)$(, A/""#0 3(($E :%"*( !"#$%&'#()*"#&"#'$+)*+,$+# @::$A1$0:$.+$B&CDD+E: G !"#$%&'()*+',$-./01 !"67888 #9$*:';:4( <8=1>" !#?9 > 87!"" F(3'.345$G'&*:'(3:D 2&/345(&4 H#?>I$?#?J8"88 A+';3+$LMNO3;& *-&#+..)/+,0)12234+)/53603,7 A3,:$LMNO3;& H !""!$K;)D4:'$-./01 !"87!#? !""$*:';:4( <8? 8""# = " G'&*:'(E$K4:$P4;1 2&/345(&4 H#?>I$9Q=J!!#Q U3O$-+E:' 8'(+93+:);+73",'6)<+034'6 V3;)+'0$WC5: 12234+)/53603,7 GA-$V:+.$RD(+(: I !"!$R1$S+3'T+E$L'3/: Q=7??6 9Q$*:';:4( <88 !##> > Q79=# V:XA+Y$2&OO:';3+. 2&/345(&4 -'&,:'D$P4;1 H#?>I$?6?J"""! !"#$%&'#()*"#&"#'$+)66 @::$A1$0:$.+$B&CDD+E: J !"6$%&'()*+',$-./01 9#7#"> !""$*:';:4( <" !##? 6 " F(3'.345$G'&*:'(3:D 2&/345(&4 H#?>I$?#?J8"88 =630+66)<+>"#3'6)?".&3$'6 <+034'6)12234+)/53603,7)6 2+'&.:$B+E4:D K !">!$Z+CD:$-./01 =679Q! #?$*:';:4( <" !##6 = #>6 F.30:..$A:O&'3+.$B&D*3(+. F.30:.. H#?>I$8?"J??>6 V3(+$A&':;3 @A)!"#$% G)&:43Y$2&/345(&4 L >!""$[3..+5:$\+., =67=== ?#$*:';:4( <8" 8""! 6 87Q88 NDD&;3+(:D 2&/345(&4 ?69J?!?! 26A New Orleans CityBusiness • November 29, 2013 RE_trends2013_RE Trends 11/8/13 8:46 AM Page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eal EstateTrends 2013 27A RE_trends2013_RE Trends 11/8/13 8:46 AM Page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est Bank To Huey P. Long Bridge Verret Opelousas Thayer Central Business District Bus. U.S. 90 Gen. M eyer Crescent City Connection . Gen. DeGaulle River Road LA 18 Holiday 4 HymanPl hitney Holmes Blvd. M Franklin W acArt hur Uptown Lafayette 7 Behrman Huey Derbigny 1 P. Long Stu ORLEANS PARISH JEFFERSON PARISH Mississippi River Manhattan Blvd. mpf Woodland Bus U.S. 90 LA 541 5 8 Louisiana 4th LA 18 3 W y es Pete t Ba Destrehan nk MacA Ex Pkwy Terry pressway rs Belle Chasse R Lapalco 6 Hw ann d rt etna Blvd. Barataria . Gr m hur Behr estwood right Blvd. right W Industrial Blvd. W 2 Lapalco PLAQUEMINES PARISH Harvey Canal intracoastal warehouses Am LA 407 LA WallBlvd. es Alexis Peters Rd. Engineers Rd. Intracoastal Waterway Pritchard Main St. 28A New Orleans CityBusiness • November 29, 2013 RE_trends2013_RE Trends 11/8/13 8:46 AM Page 29 Jack Stumpf, president of Jack Stumpf and WEST BANK Associates, says rising flood insurance rates and wetlands mitigation hurdles PHOTO BY ASHLEY MERLIN remain hurdles to large-scale commercial development on the West Bank. By John Breerwood Contributing Writer [email protected] With the Huey P. Long Bridge expansion project complete, experts say the West Bank is positioned to accommodate large-scale industrial or commercial projects if developers can jump several key hurdles. Jerry Bologna, executive director of the Jefferson Parish Economic Development Commission, said the expanded bridge is already having a significant economic impact. He noted retailers in Elmwood on the East Bank have already seen “significant appre- ciable upticks in traffic counts.” The West Bank also stands to benefit. Bologna said much of the open land at the foot of the bridge has the potential to tap into the same traffic that Elmwood has seen. “The bridge completion positions the area west of the Harvey Canal to capture a lot of future growth,” he said. “Many West Bank property own- ers that have owned land in the proximity of the Huey P. Long Bridge are starting to position their properties to get them into commerce.” Jack Stumpf, president of Jack Stumpf and Associates, is also optimistic about the area’s future growth, particularly at the base of the newly expanded bridge. “I’ve been getting calls about my property near there,” Stumpf said. “The Huey P. Long Bridge has been a big plus.” Still, a number of challenges stand in the way of widespread commercial development. Stumpf said that flood insurance and wetlands issues are the biggest concerns for prospective developers. It cost about $4,000 per acre to address a wetlands mitiga- tion issue seven years ago, and today that cost could run up as high as $30,000 per acre, he said. Stumpf said. “If an acre is worth $25,000 and you have to BY THE NUMBERS He added demand for industrial and residential put another $30,000 into it, then it does not space is also high. Occupancy Average rent* become realistic to develop it,” Stumpf said. “The “There is a demand for apartments because 1Q 76.77 percent $17.50 cost of land and improvements will be more than 2Q 75.81 percent $17.20 occupancy is very high,” Stumpf said. “We have the value of the land after it is all done.” 3Q 82.64 percent $17.60 fewer apartments today than 10 years ago and there Bologna added the uncertainty surrounding the is much demand for industrial space for speculative Source: Bruce Sossaman, Corporate Realty *Per square foot Avondale Shipyard continues to weigh on the mar- industrial buildings or parks.” ket. Huntington Ingalls Industries intends to close JEDCO relocated its headquarters in 2011 to the facility when U.S. Navy contracts end late this the return on investment and national retailers such the Churchill Business and Technology Park in year if it can’t find alternate work. The shipyard as Family Dollar and CVS increasingly prefer to Avondale. Bologna said the move underscored the now employs 1,500 down from a workforce that open in freestanding buildings. role the West Bank will have in the future of once surpassed 5,000. Stumpf sees more opportunity in redeveloping Jefferson Parish development. The strong retail market on the West Bank currently vacant retail centers. “There is a lot of green space that is ripe for resi- could prompt future development, though Stumpf “You are going to see a reduction of large vacant dential, commercial, or retail development,” he said large retail center developments are unlikely. spaces, so it is going to be difficult finding a vacant said. “If you are looking for that untapped space to He noted the cost of building such centers exceeds retail building on the West Bank right now,” build on, the West Bank is that last frontier.”• Real EstateTrends 2013 29A RE_trends2013_RE Trends 11/8/13 9:24 AM Page 30 !"#$%&'() *'()"+%,-%$.$'/%/"'#',/"%#01'*"%2""$ @'*4"#$ ,/.8)%.2 @"'#3(4%'4"($ 6.$'/ #9'8" @"'#3(4 &13/+3(4 /"'#"',/" 7"*8"($ :1.$"+%*"($ <"'*%,13/$= '>'3/',/" 8.D9'(- 5++*"## #01'*"%2""$ .88193"+ *'$"%;34; *"(.>'$"+ ?/..*# A#0B%2""$C 7;.(" ;<))'*$=. 7#3 ;&'>??<)@A N>6O$P(BQ4R N>6O$P(BQ4R$S F ."*"/0%'123"), !20""" 21$4*56*)( 7#8.8" #3219:""1 # /0M"" ,??<6'>(*?$T)6. #8!8$J>4>D6<$KD-L. 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