At Elifin Realty, we knew the only way to answer that question was to put our resources at work to capture the data on every commercial sale in East Baton Rouge Parish from 2015 to today
Trang 12019 YEAR END
MARKET SNAPSHOT
Elifin Realty
640 Main St, Suite A Baton Rouge, LA 70801
ELIFIN REALTY
2020 | JANUARY
Trang 2"HOW'S THE MARKET?"
This is a question often asked to real estate agents The answer given is typically an assessment of the particular agent’s active deal pipeline as opposed to the actual state of the market being discussed.
At Elifin Realty, we knew the only way to answer that question was to put our resources at work to capture the data on every commercial sale in East Baton Rouge Parish from 2015 to today So that is exactly what we did.
It is our pleasure to present to you a snapshot of our research and a data-driven answer to the question, “how’s the market?”
Our hope is that you find this as informative and helpful as we did. This is the first of our research reports We plan to expand into more in depth analysis and neighboring parishes in the near future.
PG 2
2020 | JANUARY
Trang 3MIDCITY
The Downtown MidCity submarket is bordered by Florida Boulevard to the north, I-10 to the south, the Mississippi River on the west, and Airline Highway to the east and includes downtown Baton Rouge and the MidCity area along Government Street.
LSU CORPORATE
COLLEGE
The LSU Corporate College submarket encompasses the southwestern corner of the parish along the Mississippi River to the I-10 / I-12 split and includes the LSU Campus, Corporate Boulevard, and College Drive areas.
parish beginning at the I-10 / I-12 split and includes the Essen Lane, Bluebonnet Boulevard, Siegen Lane, and Highland Road areas.
EAST The East submarket follows along I-12 and encompasses the
southeastern portion of parish generally bounded by Florida Boulevard to the north and Old Jefferson Highway to the south, including the South Sherwood Forest, Old Hammond, Millerville Road, and O’Neal Lane areas.
River to the north, Florida Boulevard to the south, the Mississippi River on the west, and N Flannery Road to the east and includes the I-110 corridor and area north of the Airline Highway / Florida Boulevard intersection.
BAKER ZACHARY
CENTRAL
The Baker Zachary Central submarket consists of the northern portion of the parish particularly the Baker, Zachary, and Central municipal districts.
MEMPHIS SOLUTIONS
2018 | MARCH
six submarkets to classify sales in their comparative region within the parish.
PG 3
2020 | JANUARY
Trang 4ALL BUILDINGS Sales data for all property types in
East Baton Rouge Parish.
THE 2018 BOOM Overall sales reached a five year high in 2018 with the South and
East submarkets seeing the sharpest increase in sales that year In
2019 sales trended back to typical levels The 'Tax Cuts and Jobs Act of 2017' that took effect in 2018 led to increased business investment and expansion opportunities for investors, likely leading to the increased number of sale transactions in 2018
GOVERNMENT
STREET GROWTH
The Downtown MidCity submarket sales have increased 21% since the announcement of the Government Street road diet in 2014 With the road construction scheduled to be completed in 2020, look for continued infill developments as the revitalization of Downtown Midcity progresses
THE BAKER ZACHARY
CENTRAL DIP
The Baker Zachary Central submarket sales are down 50% from
2015 This could be due to the Great Flood of 2016 with the drop off in sales being indicative of buyers’ reluctance to invest in the area As memory of the flood fades in the minds of investors, look for this submarket to rally
NUMBER OF SALE TRANSACTIONS
NUMBER OF SALE TRANSACTIONS
Trang 5The LSU College Corporate submarket sales increased 313% in 2019 in the wake of local news focusing on the oversupply in student housing Are owners rushing to sell or are buyers rushing to buy? Both Owners that have benefited from historically high occupancy levels are seeing an increase
in vacancy, signaling to some that now is the time to cash out Buyers, on the other hand, are incredibly hungry for multifamily product regardless of submarket
The East submarket saw an 86% increase in its price per unit in 2019
The South, LSU College Corporate, and Baker Zachary Central submarkets saw their price per unit drop The Downtown MidCity and North submarkets had their price per units maintain relatively the same
MULTIFAMILY
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2020 | JANUARY
Sales data for multifamily properties
in East Baton Rouge Parish.
KEY INSIGHTS
NUMBER OF
MULTIFAMILY
SALE
TRANSACTIONS
AVERAGE
PRICE PER
UNIT
NUMBER OF SALE TRANSACTIONS
Trang 6Office sales are down 32% in 2019 with each submarket seeing a drop in office
sale transactions.
The average price per sf for office sales have remained stable in most
submarkets with the exception of the The Downtown MidCity and Baker Zachary
Central submarkets which have the greatest variances in average price/sf over
the five year period.
OFFICE Sales data for office properties in
East Baton Rouge Parish.
KEY INSIGHTS
NUMBER OF
OFFICE
SALE
TRANSACTIONS
AVERAGE
PRICE PER
SQUARE FOOT
NUMBER OF SALE TRANSACTIONS
Trang 7PG 7
2020 | JANUARY
The Downtown MidCity and North submarkets are at five year highs in sale
volume.
All other submarkets are down from 2018.
Baker Zachary Central sales are down 79% over a five year period from 24
transactions in 2015 to 5 transactions in 2019.
Sales data for retail properties in East Baton Rouge Parish.
KEY INSIGHTS
NUMBER OF SALE TRANSACTIONS
NUMBER OF RETAIL SALE TRANSACTIONS
Trang 8The North submarket consists of older properties along S Choctaw Drive that
command an average sale price of $36/sf.
The South submarket consists of newer properties in the Industriplex/Cloverland area
that command an average sale price of $86/sf.
While the North submarket sales are remaining steady, South submarket sales volume
is down significantly from the 2018 spike, but the numbers are back in line with historic
trends.
East Baton Rouge Parish.
KEY INSIGHTS
NUMBER OF
INDUSTRIAL
SALE
TRANSACTIONS
AVERAGE
PRICE PER
SQUARE FOOT
NUMBER OF SALE TRANSACTIONS
Trang 9PG 9
2020 | JANUARY
THE ELIFIN
TEAM
The commercial real estate agents at Elifin Realty are specialized in their field They spend 100% of their time making deals, researching trends, and talking with property owners within their specialty When you work with Elifin, you work directly with the market expert
NOTES:
Source: Elifin Realty internal research
Sale records included the following specifications:
Building sales greater than or equal to $100,000
Multifamily sales greater than or equal to 5 units
Sale must be an arm’s length transactions (between unrelated parties)
ELIFIN REALTY
640 MAIN STREET
SUITE A
BATON ROUGE, LA 70801
800-895-9329
sales@elifinrealty.com
MATHEW LABORDE, CCIM
PRESIDENT & CEO mlaborde@elifinrealty.com
Direct: 225.659.8651 Office: 800.895.9329 Mobile: 337.326.1368
GEORGE BONVILLAIN, J.D.
OFFICE SALES & LEASING EXPERT
gbonvillain@elifinrealty.com
Direct: 225.659.8654 Office: 800.895.9329 Mobile: 337.302.0091
MARK SEGALLA
MULTIFAMILY SALES EXPERT msegalla@elifinrealty.com
Direct: 225.659.8656 Office: 800.895.9329 Mobile: 225.505.4349
WILL CHADWICK
RETAIL SALES & LEASING EXPERT
wchadwick@elifinrealty.com
Direct: 225.659.8657 Office: 800.895.9329