OFFICE RENT PRICE TRENDS:
Office space for lease is priced per square foot and calculated as an annual expense, so you need to know the square foot of space involved. The typical office is 10 feet by 12 feet. If you are leasing three offices, that is 120 square feet per office, totaling 360 square feet; however, also included can be hallway and restroom calculations. And that is just for the space you use. There is also an added charge for common space, called CAM. For example, if office rents in New Orleans average $16 per square foot, and you rent 1,000 square feet, the total annual rent is $16,000, or $1,333 per month. CAM charges could easily be $2-$5 extra. For more information on office leasing including CAM charges, read our article Office Market Trends.
OFFICE SALE PRICE TRENDS:
Office property for sale can vary by location. In New Orleans, prices for Class A office space have increased dramatically in the past 18 months. Prices for office space usually reflect the value of the total rents from the property. To determine your market price, for example, on a 10,000 square foot office building, multiply the price per square foot by the size of the building. If prices in New Orleans are $103 per square foot, your market price should approximate $1,030,000.
INDUSTRIAL SALE PRICE TRENDS:
Industrial property prices often depend on whether there is rail access or if zoning allows light industrial or heavy industrial use. The chart below shows prices of Industrial Property For Sale in the New Orleans Metropolitan Area and also all over Louisiana. You can easily see that prices are higher in the city. Other factors affecting price can be number of loading docks, office space (too much or too little) or concrete turnaround area for trucks and land. The quoted price is based only on the square footage of the warehouse. For example, if the New Orleans Industrial price is $60 per square foot, and your warehouse is 20,000 square feet, your market price would approximate $1,200,000. For more information on prices of warehouses in Metairie, read our article at Metairie Industrial Market Overview.
INDUSTRIAL RENT PRICE TRENDS:
Prices to rent industrial space in New Orleans have increased over 35% in the past 24 months, making it more expensive to rent warehouse space in New Orleans than the state as a whole. Prices vary on the condition of the warehouse, and since New Orleans is almost 300 years old, there are still some asbestos laden Quonset hut warehouse that you can get cheap, and also some newer construction in Elmwood that will be more expensive. You won’t find any brand new industrial construction space for lease, however. On top of the quoted price is the triple net charge: a pro-rated amount for the taxes and insurance. This can often increase the total bill by $1-$2 per square foot. For information on where the Industrial Areas are located in New Orleans, and the reason there are only 5, read our article Where Are New Orleans’ Industrial Zones?
MULTIFAMILY SALE PRICES:
There aren’t too many apartments sold in the area, and they are priced based on the net operating income, or cash flow. To create wealth in apartments, you increase the cash flow by reducing expenses or increasing rents. In order to charge a higher rent, you’ll need to make improvements, so factor in a return on your capital investment.
RETAIL SALE PRICES:
Retail prices in New Orleans have skyrocketed the last 12 months, caused by a rebound in disposable income and a flourishing tourism based economy. Higher profits by tenants lead to higher rental income which means the market price is higher also. If sale prices average $150 per square foot, and your retail building is 5,000 square feet, your market price would approximate $750,000.
RETAIL RENT PRICES:
Rent prices can vary greatly depending on location. Magazine Street retail space can rent for $25 per square foot, Veterans Boulevard for $35 per square foot, and new construction can be even higher. Often rents are negotiated with an amount of “Build-Out”, which might range from $10 to $50 per square foot, depending on the tenant’s credit rating and term of the lease. Often there is an allowance for free rent so the business can make improvements and get up running. To determine the monthly rent dollar amount, multiply the price per square foot by the size of your space and divide by 12.