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 ShreveportShShreveporrtt | NewNew OrleansOrleans | DallasDalllaas | HoustonHouston | San AntonioAntonio | AtlantaAAtltllantanttaa | NashvilleNa Full-Service Commercial Real Estate Investment Development Leasing Management We leverage our experience and relationships to bring maximum benet to your real estate transactions. Sealy brokers, who hold signicant experience in industrial, oce, 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.SEALYNET.comwww.SEALYNNET.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 !"#$%&'()*+,#"++(-,+$%,.$ %&#/"0(12($3$&'('"&+"&1'"(+4*&%"(5""$ A&%6"+$ 1'3./(35 83$&' ;*3$"0 +:&." A"&+,#6(&6"#$ )*,'0,#6 '"&+"&1'" 9"%."#$ %"#$(%&$" ="&%(1*,'$> &?&,'&1'" A"&+,#6(.3E:&#2 700%"++ +4*&%"(5""$ 3..*:,"0 <,6< %"#3?&$"0 @'33%+ B+4C(5""$D 9<3#" <=>>$?&&(' %&'()*+$@5*>$A+-*-5 !"#$%&#''$%()*+# #/012/33# 3#$45)657- 8#3."" #3!090"": 1# 2;/""" ,5)B=65+ !"#$%&'()*+$,-. C5D$E)>5*7+ F0FG!""" One Shell Square F The skyline doesn't liee: One Shell Square is the iconic ooffice building in New Orleans' Centtral Business District.