Office Market For Lease In New Orleans-2014 to 2018
by Robert Hand, MBA, CCIM, SIOR In business school we are taught when the supply of any good or service increases, it will cause prices to fall, but even if you haven’t studied economics you know when there is more of something, prices eventually drop. This is a basic law of economics, introduced in 1691 by philosopher John Locke and refined by Adam Smith in 1776 ; however, somebody forgot to tell New Orleans because for the last 4 years, despite the increase in
chart of prices of office sales
  Prices for sales of office property have increased almost 20 percent per year the last few years while the office lease rate trend has stagnated, according to the latest research from the commercial property database Catylist. That’s good news for new companies looking to get started with an address and lease office space and for existing companies who are outgrowing their current space. It is great news for office property owners who purchased just
Recently the heavy rains caused high water in the streets of New Orleans which seemed to take forever to drain away, and since businesses were impacted by the lack of access by customers and also water damage to their equipment and inventor, TV station WWL interviewed Louisiana Commercial Realty for their expert opinion.
The New Orleans area has seen a wave of investment activity from outside and local developers to restore and put historic, underused and dilapidated properties back into commerce. But a proposed tax reform package from the Trump administration could put future projects in jeopardy. The tax plan doesn’t include the Federal Historic Rehabilitation Tax Credit Program, which currently offers developers a 20 percent credit on qualified rehabilitation expenditures for a building that the National Park
4001 Division
“Third time’s the charm” is the saying, used usually after the first two failures, but Louisiana Commercial Realty has been successful three times in a row at helping engineering companies find the perfect home for their growing company. Recently, Infinity Engineering, a highly successful and growing expert in marine construction with projects including a $25 million mooring dock and a $25 million bio-diesel plant, found a home at 4001 Division Street in a $1.48 million purchase
New Orleans District Attorney
Recently Louisiana Commercial Realty teamed with Orleans Parish Assistant District attorney Michael Danon to get one more criminal off the streets of New Orleans. The crime occurred in 2014, and it took 3 years to get the criminal arrested and to court which culminated this month in a trial before Judge Camille Buras in Orleans Parish Criminal Court where criminal Christopher Karl Stephan pleaded guilty to felony theft and fraud, waiving his right to a trial and
CCIM, the Certified Commercial Investment Member Institute, recently interviewed Louisiana Commercial Realty for their publication on entrepreneurs in commercial estate. Founded over 50 years ago, the CCIM Institute is commercial real estate’s most influential professional organization, with members closing $200 billion annually in commercial real estate deals. The CCIM designation represents the highest achievement in commercial real estate because it usually takes members 3 years to earn due to its rigorous education and testing requirements. The
University of Southern Mississippi
Louisiana Commercial Realty and its sister company Mississippi Commercial Realty recently talked with the University of Southern Mississippi to explore helping new medical research companies get a fast start with office space in the only Class A medical office building available in the Hattiesburg, Mississippi area. Mississippi Commercial Realty is exclusive leasing agent for the One Lincoln Parkway Medical Center and is holding talks with dialysis companies, laboratory research groups, cialis 5mg prix en pharmacie physicians
New Orleans District Attorney
Civil District Court Judge Bruno listened to both attorneys then made some notes and concluded “I find Louisiana Commercial Realty testimony credible and find the defendant, James Ramsey, tried to conceal the sale of property from the listing agent.” The controversy occurred after seller Ramsey hired the listing agent but then secretly sold the 10 acre property on Read Road without disclosing it to the listing broker they hired. The lawsuit is compounded by the fact that the sale
chart labor force decline
A plunging Louisiana unemployment rate to 5.2 percent means good times are back, right? Not so fast. Even through the low unemployment rate was promoted not only by Governor Edwards, but also the Louisiana Workforce Commission, CNN Money, and US News & World Report, the fact is: things actually have gotten worse. If you work through the math and look at the facts, you will see why Louisiana has millions of disgruntled workers and why
lease problems
The state of Georgia is one of the most efficient managers of its 2,000 office leases, with only a staff of 10 people each managing a portfolio up to 300 properties including renewals and expansions, plus new lease transactions. Solutions To The Challenges of Managing Thousands Of Leases  Today, Louisiana Commercial Realty met with the State Properties Commission to discuss challenges and solutions to managing the multitude of lease contracts with such a small staff. Since the Properties Commission
job pie
The hotel and restaurant industries are the driving forces of the New Orleans non-government economy, employing over 75,000 people according to the latest numbers from GNO Inc. and Economic Modeling Specialists International. These hotel workers are an integral part New Orleans’ ability to satisfy current tourism and while future growth requires even more hotels, that doesn’t mean any old carpet bagger can build a hotel just anywhere in this city. According to the National Travel and
mandatory lease items
Whether you rent office space, a warehouse, or a retail store, your lease probably has language that ties rent you pay to the Consumer Price Index. The idea is meant to benefit only the landlord, because the rental income retains its purchasing power. The problem is that there is more than one Consumer Price Index and there are different ways to calculate each, so make sure your lease agreement contains language that is very specific. One example of lease
FEMA Flood Maps
Katrina, Harvey and Irma Increase Flood Insurance Awareness Normally when people ask if an area floods they are talking about heavy rains causing water to pool in the streets until the city pumps can suck the water down the drains and into the Mississippi River, but since Hurricane Katrina caused the levees to fail and flood the city with water from Lake Pontchartrain, and Harvey soaked Houston with 50 inches for 4 days, and Irma storm-surged
In addition to the loss of life, jobs, savings, and disrupted families, the victims of Hurricane Harvey will have to deal with the loss of their property and the numbers are staggering. Satellite maps from Reuters show 30,000 properties flooded valued at 23 billion, with 26 percent land only but 74 percent are homes and commercial properties including shopping centers, office buildings and warehouses. The University of Colorado research shows flooding in Harris County over
flood cleanup costs
FEMA is on the ground now visiting damage by Hurricane Harvey and processing claims with aid per house up to $33,000 but each home FEMA claim can be different. For homeowners, it can feel like a deer caught in headlights, and you just don’t know what to do. Mold sets in within 24 hours so you need to take action. This article outlines what victims of flooded property need to do right now, and what it will
cpi since 1913
Whether you rent office space in Class A towers or a warehouse to store inventory or retail space for your coffee shop, your lease with the landlord probably has terms that are not good for you but that you agreed to anyway. Just make sure your lease renewal doesn’t have the three most common mistakes. Even small mistakes can be very costly unless your lease language is clear on every detail. Most Leases Include Price Increases Tied To
Hattiesburg Lincoln Parkway Medical
Louisiana Commercial Realty and its sister company, Mississippi Commercial Realty, were hired recently to market the only Class A medical office center in Hattiesburg, Mississippi, known as One Lincoln Parkway Medical Center. The ADA compliant medical office building is 85,000 square feet on three floors and is home to the major health providers in the Hattiesburg area. The building was constructed in 2005 and offers wrap-around parking for 200 cars, and portico access on all
Louisiana Commercial Realty has been ranked among the top 100 commercial-only real estate brokers in the Gulf South area, including northwest Florida, Alabama, Mississippi and Louisiana, having been inducted into the Society of Industrial and Office Realtors, which is an invitation-only international organization of the top ranked commercial real estate brokers in 630 cities and 34 countries. SIOR members are specialists in the office and industrial markets and must meet stringent requirements certifying their expertise. Of
skool bus
Sometimes we forget that behind the everyday tasks of waking up, getting dressed, eating breakfast, and just getting to school or work are people making alarm clocks, clothes, frozen waffles and driving buses to help us along the way. In higher level economics courses, it is called the “Multiplier Effect“, where a change in input, or spending, causes a larger effect on output, or Gross National Product. For the average person, we don’t think about all the
New Orleans contracts out all the transportation work including streetcars, city buses and public school buses to outside vendors, who are mostly from out of state, so carpetbaggers are always asking where can I find a lot to park my buses. Not so fast. Any old vacant lot just won’t do. Residential zoning won’t work. What about commercial zoning? Nope. Of the 83 zoning districts in Orleans Parish, only 3 permit school bus parking: light or heavy industrial and marine
Start-ups 68% higher in New Orleans than national average   For decades prior to 2005’s Hurricane Katrina, new businesses fled New Orleans in mass for greener pastures with more high-tech employees and payroll tax incentives, but after Katrina many residents launched their entrepreneurial spirit and started their own businesses, resulting in a doubling of new businesses that is 68% higher than the national average and has lasted for more than a decade. Among these entrepreneurs are high
After unsuccessful attempts by Latter & Blum, the largest commercial real estate firm in the south, to sell his property, the owner of the largest office property for sale near Ochsner Baptist Hospital decided to try a different approach and hired a small boutique commercial real estate firm, Louisiana Commercial Realty to market his property. Ethical Standards and Conflicts of Interest President Robert Hand explains, “Many commercial property owners come to us to help them sell
With over 4,000 known blighted properties in New Orleans, and probably an additional 10,000 not yet declared blighted, city officials have recently discovered they can bring in new revenues from code violation fines. One commercial property at 1532 Robert E. Lee Boulevard was assessed $100,000 in fines, which were paid in order for Ochsner to have a clinic there. The fines force property owners to make repairs which eventually brings in more revenue to the City because repairs
Construction starts on $61M ‘Canal Crossing’ development downtown By: Andrew Valenti, Reporter, January 31, 2017 Construction has begun on a massive mixed-use development at the site of a former Canal Street surface parking lot led by a real estate development partnership with ties to Missouri billionaire sports mogul Stan Kroenke. According to plans filed with the city, Provident Realty Advisors of Dallas and The Kroenke Group of Columbia, Missouri are partnering in a development at
At first glance, imposing tariffs or quotas appear to be the perfect solution to get American industries back on track to prosperity, but the reality is that tariffs steal money out of consumers’ pockets by causing prices to increase, stifle creativity, reward inefficiencies and destroy the competitive drive that allows a free market economy to deliver cheaper, smarter and innovative products to you. If you skipped college or avoided a business degree, you missed the
The recent sale of 2537 Tulane Avenue for $5.6 million set a record highest price for property closest to the new $2 billion hospital development, so Citybusiness reached out to Louisiana Commercial Realty broker Robert Hand to discuss the trend on Tulane Avenue apartments and hotels: Commercial broker Robert Hand, president of Louisiana Commercial Realty, said that he feels either project would do extremely well in that area due to high demand for those services.
The city’s criteria for building a hotel on the New Orleans airport north terminal property will shock you. The hotel is part of the $800 million new terminal on the massive stretch of land on the north end near Veterans Boulevard. That will be good news for the tourism industry which is a powerful economic driver to the area, witnessed by last year’s 10.6 million passengers,  up 9.1% from the previous year. The new development will demolish concourses A, B
The Times-Picayune first broke the story that no bidders stepped forward to lease 22,000 square feet of city land to build an 8-story, $17 million, 140 room hotel on the $807 million airport terminal development on the north side of the existing Louis Armstrong, so they reached out to Louisiana Commercial Realty president Robert Hand for an explanation. September 28, 2016 at 2:50 PM By Katherine Sayre, | The Times-Picayune Louis Armstrong International Airport’s plan
The largest development in the history of Jefferson Parish, and the one having the biggest impact on the future of New Orleans, is the development of the $807 million dollar north terminal at Louis Armstrong Airport, which will include a 140 room hotel on land leased from the city. CityBusiness recently interviewed Robert Hand, president at Louisiana Commercial Realty on the hotel development. September 29, 2016 By: Lance Traweek, Managing Editor Louis Armstrong International Airport doesn’t plan to scrap plans
Whether you rent office space, a warehouse, or a retail store, your lease probably has language that ties rent you pay to the Consumer Price Index. The idea is meant to benefit only the landlord, because the rental income retains its purchasing power. The problem is that there is more than one Consumer Price Index and there are different ways to calculate each, so make sure your lease agreement contains language that is very specific. One example of lease
The City Has A Process That Fosters Blighted Property It’s not a conspiracy, but the result is the same: New Orleans still has thousands of blighted houses. What it can be called is a dysfunctional system that created an organized effort that actually encourages blighted property, and uses your tax dollars to take away your tax dollars. The effect of thousands of blighted properties is two-fold: one, a loss of property taxes, which could be used to
With a 77% increase in price, the gold medal for New Orleans’ commercial real estate goes to the apartment sector, far outpacing every other sector of commercial real estate over the past year. The silver medal goes to the office sector with a 21% increase in average sale price, and the bronze goes to the industrial lease sector with an 18% increase in price. Prices This Past Year for Major Sectors of New Orleans Commercial Real
Pricing commercial real estate is vastly different from other assets, such as stocks and bonds where thousands of buyers and sellers state openly their best price and recent transactions are known by all. In fact, commercial real estate pricing is far from a highly competitive industry which must have transparency and all participants have easy access to information. In commercial real estate, money is made when one party has superior information, meaning the other party has
New Orleans once was one of the largest cities in America- for over 140 years. Today it is an exciting place to live with an intoxicating culture steeped in its 300 year old history, but for those who have lived here long enough to see their children go from the “Trinity Pink Party” to LSU Engineering School, a silent but deadly penalty stymies the growth of wealth. Nobody talks about it, but we all endure it.
cap rate table
Money is made in commercial real estate by having the vision to create value where none before existing. Since prices are not transparent like stocks quoted at the bottom of your big screen TV, the person who accurately determines value is the one who comes out ahead. Smart commercial real estate investors use a tool called the Cap Rate, and this article shares the basics and how you can use it to your advantage. Whether you
You need parking for 75 people, but how do you convert this into useful information, such as square footage of land? A good rule of thumb is to allow just as much square footage for parking as you estimate you will need to allow for any building, whether it is office, or retail, or apartments. This article explores how to accurately calculate how many parking spaces can be configured, for a given square footage. Gross Floor Area Determines
When you purchase commercial real estate, one of the top 5 things you need to know on day one should be the parking requirement. Parking requirements are established by the Department of Planning in the Parish where the property is located. If the property is located in an incorporated city such as Kenner, they will have their own zoning codes which override the Parish zoning codes. The Planning Department also includes departments regulating zoning as well
It’s really smart to bring in experts when facing major decisions and a purchase of high value real estate is no exception; however, there is a widespread trend, while not illegal, that many real estate professionals consider unethical: the inspection renegotiation.  Stop The Insanity! Somewhere between Suzanne Somers’ Thigh Master and PX-90, Crossfit and Pilates, there was Stop The Insanity, one of the first TV exercise programs by Susan Powter to go viral. It’s the same message that arises today, only
Louisiana is second in the nation in refinery capacity and has 112,000 miles of pipeline carrying crude oil and natural gas, so will the collapse in the price of oil also cause a collapse in Louisiana’s economy? Uncle Jed Missed The Rabbit and Hit Oil Only Once In the early days of Merrill Lynch, a new stockbroker overheard a breaking news report that hydrocarbons were discovered off Louisiana’s coast in the Gulf of Mexico, causing the
Louisiana first encouraged the movie industry to come here in 2002, when the legislature passed the Motion Picture Tax Credit Program, but it didn’t catch on until we beefed it up in 2005, and this year the incentives are producing spectacular results.  In the 63 years before the incentives were created, 52 movies were made, including the favorite Easy Rider in 1969; in the 13 years after, 295 movies were made. In 2015, we are on
You might think taking 2 years to lease vacant office space is an outlier, an anomaly, or that something’s just wrong: like a building sitting on an earthquake fault; however, it’s just par for course for downtown New Orleans’ finest office towers where 78% of full floor offices have sat vacant for over one year, and 35% have sat for over 2 years, and 13% for over 4 years. And that’s just vacant time to date. Pie
It is a 100 year old well known historic-looking warehouse, steeped in the history of New Orleans as a port city, and the owners have recently hired Louisiana Commercial Realty to market nationwide the 39,042 square foot brick building for lease. The building has been family owned for almost half a century, and recently two family members bought out the remaining family, made improvements and began leasing the building themselves to a movie studio and a metals company
The most popular method of appraising commercial real estate is not the most accurate. Usually we compare past sales of property and apply the price per square foot, but this is valid only if all the properties are homogeneous, which is never the situation. Let’s examine three methods of valuing commercial real estate. Sales Approach The most common method of valuing commercial property is the least accurate, because it only works if all properties have
Determining accurate prices for commercial real estate can be elusive. It’s not what economist call a highly competitive market such as buying a stock or a bond where the bid (highest price for buyer) and ask (lowest price for seller) is actively visible for all to see. Market prices for commercial real estate can be vastly different from appraisal valuations and can vary widely by property type, location and tenant. The unpredictability of determining a
In this article we examine current market prices for every type commercial real estate in Louisiana. Louisiana Largest Sector On The Market For An Astounding 460 Days In Louisiana, there is 26.9 million square feet of commercial space for sale and 24.2 million square feet for lease, which can be broken down into these major categories: INDUSTRIAL: The Industrial sector has 926 properties totaling 21.1 million square feet and an average asking sale price of
Vacant Tulane Avenue Hotel Sells By: Robin Shannon, CityBusiness Managing Editor April 9, 2015 A vacant hotel property that is among the largest pieces of available real estate along Tulane Avenue recently changed hands after more than three years on the market. The Americas Best Value Inn, 2820 Tulane Ave., sold on March 25 for $1.06 million, according to Orleans Parish conveyance records. The 16,000-square-foot hotel, which is spread across three separate buildings, sits on
The common belief that homes prices rise during the summer months because everyone wants to be settled in before school starts is true. The facts show us that the highest prices concentrate around the month of June. Examining The Trend of 10,323 Homes Sold Over The Last 5 Years Using the Multi List Service from the Realtor database, home sale prices can be sorted by month, as shown in the table below in a sample of 10,326 single family
Over the last 4 years, available office space for sale in the New Orleans area has plummeted to one third of its previous supply, due to a lack of new office space construction. The result is a strengthening of sale prices in the office market. This article examines the supply and demand of office space and the trend for the future. Just 4 years ago, there was just as much office space for sale as there
Fire Damaged America’s Best Hotel Going Back Into Commerce As Office/Retail Center NEW ORLEANS, Louisiana. March 26, 2015 – Tulane Avenue is the most anticipated area in New Orleans for new developments, and the largest tract of land in the area will finally be put back into commerce after 4 years of work by a local commercial real estate broker.  Louisiana Commercial Realty president Robert Hand says, “Our firm has been involved with almost every