Louisiana Commercial Realty announced today they were hired to market the 69,000 square foot tract of land at 5550 Crowder Boulevard for GTE Financial. Robert Hand, president of Louisiana Commercial Realty said, ” This tract of land is a great opportunity to bring retail businesses to an underserved market. Our research shows within a 5 minute drive time there is a population of 24,000 with an average household income of $48,000, and there is a
If you want to see Louisiana grow, which jobs would you prefer to bring in: oil or tourism? One of these two top industries delivers twice as many jobs but has one-third of the wages. This article examines jobs and wages, defining what is called Export Jobs which in the long run determine our economic future. Mardi Gras is a perfect example of the strength of our economy to attract people who spend money on hotel rooms,
Snowden was right. Big data is collecting information on you, but you will be astounded at how the latest technology can help commercial real estate buyers and sellers, landlords and tenants, to not only select the perfect location for their business but reduce advertising expenses and drive sales. For example, if your business is selling toothbrushes, we can now tell how much people spend monthly on toothbrushes and toothpaste within a 1, 3 and 5 minute drive time
Even though Louisiana has a diverse culture and varying economic drivers among its major cities, the range of prices of office space will surprise you. For the most part, office lease prices vary by roughly 20%, from a low of $15.03 in Lake Charles to a high of $19.19 in Harahan, with Shreveport/Bossier city being an outlier around $12.32. Sale prices range from $95.44 to $132.24, a 30% variation.  Office Lease Rate By City In Louisiana
jethro bodine ciphering Whenever Beverly Hillbillies star Jethro Bodine needed to do math, he would commence to ciphering by the cement pond, proving that math can be simple if you have enough fingers and toes. Commercial real estate is sometimes that way but sometimes not. Fortunately, when we need to do some math to answer the simple question, “What is the average price of a full floor of Class A Office space in New Orleans?”, the data
The Class A office market in New Orleans is 90% leased but the 10% that is vacant is almost half comprised of full floors, and full floors take an eternity to lease since they are configured for a single tenant. Full floors range from 18,000 square feet to 24,000 square feet which can accommodate 50 to 75 employees depending on the configuration. pie chart full floor Private Offices Are History Gone are the days of 10′
The biggest surprise to most sellers of commercial property is that the average time to find a buyer is well over one year. For example, in New Orleans, the average industrial property for sale or lease in the last 24 months has been on the market 510 days. And still counting. Industrial Properties In New Orleans-Days On Market & Lease Rates chart industrial days on market The industrial sector has the longest waiting period. There
There are 13,439 active Louisiana real estate agents, but the city with the most and the company with the most will surprise you. The location of real estate agents does not match up identically with the location of the home buying public. For example, New Orleans has the most licensed agents but does not have the highest population count unless you add in Metairie. Shreveport is the 3rd largest agent count in the state but only has the
The recent census found 1.2 million people live in the New Orleans Metropolitan Area, down only 7% from the 1.3 million in 2000, but the makeup of who lives here and the driving forces of the economy will shock you. What Jobs Drive The Economy? Government, hotels / restaurants and hospitals are where the jobs are in Orleans Parish, and in that order. The most jobs per industry are shown in the chart below. The latest technology
Adaptive Re-Use of Strip Retail Center Into Office Space Due To Kenner’s Changing Demographics 4224 Williams   Things are changing in Kenner, Louisiana. One of the major trends is how commercial real estate in the area is changing to adapt to the new demographics. According to Robert Hand, president of Louisiana Commercial Realty, “Gone are the high end wine stores and expensive restaurants, and in their place are small, mom and pop, retail stores and
market size table Louisiana Pricing Multi-Family commercial real estate in Louisiana is often difficult because the sector includes a wide range of types, from 100 year old plantation housing called shotgun doubles to low-rise garden style to high rise complexes. Each property type contains its own revenue supply and demand line and expense percentage, producing a variety of net operating incomes which affect how a property is priced. This article examines what the average prices are for Multi-Family across
Nationwide, the jobs picture wouldn’t look as good if it weren’t for the energy industry. Take out the 1.1 million jobs created in Texas, the state that has led in job creation, and the country would be 350,000 below the 2008 peak, according to research by the Federal Reserve Bank of Dallas. The U.S. economy achieved a milestone in May with employment exceeding the all-time high in January 2008. Yet 29 states have not recovered
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1250 poydras front The largest contiguous Class A office tower space available in New Orleans’ Central Business District is being converted to a Hyatt Hotel, according to Robert Hand, president of Louisiana Commercial Realty, LLC, who marketed the 56,000 square feet on three floors at the 1250 Poydras Office Tower, located on the corner of Loyola Avenue and Poydras Street, in downtown New Orleans. The 56,000 square feet on floors 11, 12 and 13 will be
Your commercial property is not worth the appraisal it was written on. That’s because an appraisal looks at past prices and your property is worth what a qualified and motivated buyer will pay today, depending on his use of the property. It has little to do with past purchases and uses. That’s why a vacant hotel on Canal Street appraised for $9 million and will sell for $4 million. Buying, selling or leasing Commercial Real Estate is
New Orleans is growing due to superior incentives offered to businesses to relocate here. For example, there is a 25% tax credit for digital media expenditures. That is a dollar-for-dollar tax credit. There is a 50% bonus depreciation and tax exempt financing at a 2% interest rate. There is a tax credit for live performances up to 25% of expenditures. There is a tax credit of 30% which can also be sold on movie expenditures. There
The largest new hospital development in the United States is the New Orleans 70 acre $2 billion combination of a new Veterans Administration hospital and, just on the other side of South Galvez Street, the new University Medical Center that will replace Charity Hospital which was rendered obsolete by Hurricane Katrina and time. University Medical Center is 6 Teaching Schools The University Medical Center will be anchored by LSU, Tulane, Dillard, Xavier, SUNO, Delgado, and other
Technology has taken a giant leap forward the last few years by expanding the traditional tool of demographic research into an analysis of lifestyles and consumer spending behavior. The old school strategy was to look at population count and income and age to determine a good location for a business, but new school tools such as Leakage Factor, Retail Gap Analysis and Tapestry Lifestyle Analysis take decision making to a higher level and reduce the
“A sum given by the buyer to the seller in connection with a contract to sell is regarded to be a deposit on account of the price, unless the parties have expressly provided otherwise. If the parties stipulate that a sum given by the buyer to the seller is earnest money, either party may recede from the contract, but the buyer who chooses to recede must forfeit the earnest money, and the seller who so
If you are looking for industrial zoned property in Orleans Parish, there are only five areas from which to choose. That’s because every one of the industrial zoned areas is near a railroad, a byproduct of 300 years of development in New Orleans. New Orleans was founded in 1718 and development was fueled by sugar and coffee trading and transportation as the gateway to the Mississippi River. From 1830 to 1840 it became the wealthiest and third most populous city in
New Orleans Among Few Cities Approved For Warehousing Metals New Orleans is one of only 37 cities in the world approved by the London Metals Exchange to store inventory, which makes owning one of the 600 approved warehouses a good way to take advantage of a market with limited supply and constant demand. About the London Metals Exchange Vast quantities of metals are traded at the London Metals Exchange, where buyers and sellers of metals
Even though there is much anticipation of spin-off commercial real estate development surrounding the new Veterans Administration and LSU hospitals on Tulane Avenue in New Orleans, there will be no doctor’s clinics constructed, no medical offices and no lab testing facilities built to replace the vacant lots and blighted structures. This article details the hospital developments on Tulane Avenue and why the changing business model that hospitals have today eliminates the demand for commercial real
The supply of office properties for lease in Orleans Parish has grown over 8.85% annually the last three years, with 1.9 million square feet in 286 properties averaging a lease of four properties per month at $15.62 per square foot. But that doesn’t tell the whole story about the trend of the office market in Orleans Parish. By using pivot tables, we can drill down into the data and determine the real trend.   The chart
Abutting the Lincoln Manor subdivision, near a shopping mall that Kenner officials hope will thrive, sits a 25-acre tract of commercial property that once was coveted by real estate developers but today looks more like a wildlife refuge. The Home Depot owns the undeveloped land, which is so badly overgrown that weed stalks, some taller than basketball goals, have completely swallowed a stop sign at 31st Street and California Avenue. The Home Depot’s land once contained residential subdivisions,
Until this report, there has not been an analysis of the real estate agents and the appraisers in Louisiana. This report provides a snapshot of both industries and examines who is number one and where they do business. How Many Real Estate Agents Are There? There are 13,438 licensed real estate agents in Louisiana, but where they are located will surprise you. The location of real estate agents does not match up identically with the location of
This presentation discusses using the latest technology to help you select a great location for a business. You won’t believe the things businesses know about you, when they are looking to put in a new location in your neighborhood.
New Orleans is almost 300 years old, so classifying and describing commercial real estate can be tricky. That’s because New Orleans has 100 year old buildings that look better on the inside than brand spanking new construction. To help with the confusion, many commercial real estate specialists use the building classes defined by the Building Owners and Managers Association which few people understand. Let’s review the classes of buildings and clear up the confusion. Building Class
While the average occupancy of Class A office space in Metairie is 94% and in New Orleans CBD is 88%, why are tenants leaving Metairie to lease space in downtown New Orleans and why are some Class A CBD buildings experiencing occupancy as low as 60%? This analysis answers those questions with graphs of the latest information on the office market in the New Orleans area. Size of the New Orleans Office Market There is 13,800,000 square
Purchasing a Mortgage Note Is a Smart Strategy With Overpriced Real Estate Adjudicated properties are coming to market over the next few weeks, so now is a good time to review how to purchase real estate at rock bottom prices when a property owner has defaulted on the mortgage. Often commercial real estate properties that are in trouble have defaults by the property owner on mortgages, contractor work, and taxes, in addition to deficiencies by city
With 30 year Treasury Bonds yielding 3.79 percent, many investors as well as institutions are considering investing in commercial real estate. How do you know whether the market is right to invest or not? This article presents a strategy for analyzing whether or not it is feasible to develop commercial office property. Feasibility Rent The first question you’ll need to answer is whether rents are high enough to justify new construction. This concept helps the analyst
Most Louisiana appraisers licensed in 2013 actually live in Texas. The appraisal industry in Louisiana is undergoing a significant decline in the number of general licenses issued to Louisiana appraisers while at the same time appraisers in Texas are being hired to perform appraisals in Louisiana. The result is a dying Louisiana industry.   Types of Appraisers There are 191 Appraiser Trainees who earned a license upon passing a test and completing 75 hours of
The purpose of commercial real estate tax credits is to encourage the preservation of historic buildings through incentives to support rehabilitation of historic and older buildings. Since the inception of the Federal Rehabilitation Tax Credit, Louisiana has been a leader in certified tax credit projects, generating over $2 billion in private reinvestment in Louisiana communities. The State Commercial Tax Credit has leveraged more than $350 million in private reinvestment in Louisiana Downtown Development Districts and
Every day the United States government collects data and nobody likes personal information collected, but there is other information collected that we need which is very helpful, such as data used in determining the health of the economy. One of the most important numbers collected by the Department of Labor is how many people are out of work broken down by major city, and the latest data are in. Unemployment Rate For April 2014 Was 5.9 Percent
While the number of people out of work in Louisiana is one of the lowest in the U.S., the biggest city in Louisiana suffers from a decline in jobs, not just since Katrina, but going back at least twenty years. The actual number of people employed in the New Orleans area is lower than it was twenty years ago, according to The Bureau of Labor Statistics, which tracks employment in each state and further breaks down the employment
This 25 page report analyzes in detail what businesses are needed in New Orleans East. We examine consumer spending to determine Retail Gaps and calculate the Leakage Factor to see where the unfulfilled demand is. Feasibility New Orleans East – Download pdf    
Commercial real estate valuation differs from stock and bond valuations because ral estate often has fewer buyers, only one seller, little comparable properties and location biases, compared to pricing a share of stock which is quoted visibly and enjoys hundreds of trades every minute. If commercial real estate information was more widespread and there were more buyers and sellers, properties would be easier to value. However real estate is not a purely competitive market where there is
The new economic drivers of the New Orleans economy are not what you think. New Orleans transitioned from an oil based economy to a tourism based economy starting in the 1980’s, with the development of the convention center and continued through the next century with an explosion bigger than Norco in growth of new restaurants after Hurricane Katrina in 2005. The transition away from oil leaves one last economic driver related to the oil industry:
CityBusiness Named Robert Hand one of the Top 50 Financial Executives in New Orleans for 2012. “It’s  possible to spur redevelopment along a dilapidated corridor and bring affordable housing to a community while still making a profitable investment. Just ask Robert Hand, who has played a key role in securing more than $200 million for new developments in the past five years to bring affordable housing to New Orleans. Inherited real estate accounted for a size­able portion of
Fastest Job Growth In Louisiana Even through the state of Louisiana reports one of the lowest unemployment rates in the nation dropping to 4.5 percent, not all areas of Louisiana have witnessed reduced unemployment in the last 12 months. For example, Shreveport suffers from a reversal of the Haynesville Shale boom with a employment decline of 0.2 percent, and Alexandria experienced the largest employment decline at 0.6 percent. On the flip side, the biggest improvement in employment the
The preliminary figures from The Bureau of Labor Statistics show Louisiana has a low unemployment rate of 4.5 percent, compared to the US rate of 6.3 percent, as of April 2014. Forty-three states had unemployment rate decreases, two states had increases, and five states had no change. The national jobless rate fell to 6.3 percent in March and was 1.2 percentage points lower than in April of last year. table april 2014 unemployment rate Best States
The major industries in the 10 parish area are hotel, health care and retail, but manufacturing is still number four on the list. The table below shows the average number of people employed in the industry and the employment as a percent of total employment.  Major Industries in the 10 Parish Area AVERAGE EMPLOYMENT EMPLOYMENT PERCENTAGE Agriculture, forestry, fishing and hunting 847 0.15% Mining 8,513 1.51% Utilities 4,617 0.82% Construction 36,829 6.53% Manufacturing 43,004 7.62% Wholesale
The most important financial change of anyone alive today has been the reverse of the 1970’s decade of inflation and subsequent declining interest rates since the 1980’s. The decline in interest rates the last three decades has impacted commercial real estate due to the principal of “Opportunity Cost”, because as alternative investment returns decline, commercial real estate prices must increase to result in comparable lower returns. The Cap Rate is short for capitalization rate, which
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
Louisiana Commercial Realty announced today that the company had brokered 22,000 square feet at 210 Industrial Avenue for one of the highest prices recorded in Jefferson Parish for industrial land. Commercial real estate broker Robert Hand says, “In Jefferson Parish there are currently 80 properties of vacant land for sale at an average price of $5.68 per square foot over the last 12 months, which is up from an average price of $5.44 per square foot over the last two years.
Louisiana Commercial Realty announced today the completion of negotiations and the purchase of 2200 Royal Street for the newest location of a Sukho Thai restaurant in New Orleans. Robert Hand, president of Louisiana Commercial Realty, says, “After an exhausting search including hundreds of possible locations, we are pleased to have completed negotiations for our client to purchase this terrific location for a new Sukho Thai restaurant.” New Sukho Thai location at 2200 Royal Street Steeped In
Robert Hand, president of Louisiana Commercial Realty The largest contiguous Class A office tower space for lease in New Orleans’ CBD is now available, according to Robert Hand, president of Louisiana Commercial Realty, who is co-marketing the office space with Maria McLellan, Associate Broker of Corporate Services with Gulf States Real Estate Services, LLC. The space encompasses four full floors at 1250 Poydras Street, located on the corner of Loyola Avenue and Poydras Street, in
NEGOTIATE COMMERCIAL REAL ESTATE CONTRACTS WITH STRENGTH For investors and/or commercial brokers, negotiating a commercial real estate contract can be rather daunting. If done incorrectly, then the losses can be astronomical. It is critical that you know the key provisions of a commercial real estate contract and how to effectively negotiate terms. First and foremost, it is important to understand what your main objective of the negotiation will be. For example, is your objective to
POSTPONING TAXES WITH 1031 EXCHANGES The 1031 exchange, also termed the Starker exchange or tax-deferred exchange, allows you to sell investment property and to defer capital gains and depreciation recapture taxes. Assuming that you are reinvesting 100% of the equity into “like-kind” property of equal or greater value. “Like-Kind” property is any property held for investment purposes. The idea behind 1031 exchange is that when an owner has reinvested the sale proceeds into another property,
SALE CONTRACT PITFALLS   There will always be risks involved when purchasing a piece of investment property. However, the goal is to minimize these risks as much as possible. The following are several potential sale contract pitfalls you may want to avoid. It is critical that you find out if there are any defects in title before you sign on the dotted line. Since property is recorded in the form of a deed, research the public
  TRIPLE NET LEASE BASICS  A triple net lease, also known as a true net lease, is when the tenant or lessee agrees to pay all the taxes, insurance and common area maintenance expenses that arise from the use of the property, in addition to the basic rental space costs. In a triple net lease the tenant is also responsible for all costs associated with repairs or replacement of structural building elements of the property.
Even though large tracts of vacant land are scarce in New Orleans, it can be difficult to accurately value raw land. This article explains how sophisticated commercial property investors value land to determine if their development is feasible. How property is valued will surprise you. The value depends on how the site is utilized. It’s called highest and best use. A gas station is more profitable than a car wash, so it can pay more for