2019 New Orleans | Metairie Industrial Real Estate Market Overview
The Year In Review: Industrial Market
Leases: There were 97 completed leases totaling 800,000 SF reported in 2019, mostly in the Elmwood area and 25% in the airport area. Lease rates ranged from $3.50 PSF to $13.58 PSF. The leases averaged $7.29 PSF for an 8,000 SF building and were on the market for almost 10 months.
Where We Started The Year and Where We Stand Today
At year end, there are 284 industrial properties totaling 6.3 million square feet for sale and for lease, comprised of 3.3 million square feet in 193 (67%) properties for lease at $5.38 per square foot and 2.9 million square feet in 91 properties (33%) for sale averaging $45.69 PSF. The average property has been on the market 238 days. At the beginning of the year, there was one less property listed than at the end, but the total was 5.7 million SF, so 2019 witnessed 600,000 net square feet come on the market, entirely in the leasing market. The was no change in the square footage for sale. Asking lease rates increased from $5.28 PSF to $5.38 PSF and asking sale prices increased from $41.63 PSF to $45.69 PSF. The numbers defy traditional economics since with no additional supply, sale prices rose and lease prices also rose even though supply increased 15%. The explanation is that newer and more attractive buildings came on the market for sale and for lease, driving prices higher.