The preliminary employment numbers are just now in from the Bureau of Labor Statistics, and they show Louisiana added 30,800 jobs for the 12 month period ending October 2013. Employment in Louisiana for the 12 months ending October 2013 grew from 1,935,700 to 1,966,500. The table below shows the states with statistically significant employment changes, seasonally adjusted. Table of States With Significant Employment Growth Last 12 Months employment october 2013 LA   Not All Regions Prospered
One of the most important indicators of how the U.S. economy is doing is personal income because it shows the potential spending power of the consumer which drives 2/3 of the economy with manufacturing now driving only 1/3 of the economy. Today the Bureau of Economic Analysis released data on how personal income changed for the most recent period, July 2013 to August 2013. Personal income increased $57.2 billion, or 0.4 percent, and disposable personal income
Just out today is the Bureau of Economic Analysis report on GDP by MSA, showing last year the New Orleans-Metairie economy grew almost twice the average pace at 8.0% compared to the U.S. at 4.09%. Chart of New Orleans GDP, Current Dollar Percent Growth The New Orleans MSA was one of 305 Metropolitan Statistical Areas that experienced positive real growth in Gross Domestic Product in 2012, out of 381 MSA’s.   Largest Areas With Fastest
Just out today are the numbers on how many people are employed in the U.S., but if you drill deeper, you can find out current employment data on Louisiana and also the New Orleans MSA. Looking at employment growth provides a snapshot of consumer spending driving economic growth and can help you plan a wide variety of business decisions such as: commercial real investment, inventory size, payroll expansion or contraction and new location demand.  U.S. Employment
Today the Bureau of Labor Statistics announced the unemployment numbers for the period ending July 2013 broken down into the 372 metropolitan areas. Jobless rates were lower in July than a year earlier in 320 of the 372 metropolitan areas, higher in 38, and unchanged in 14. Forty-one areas had jobless rates of at least 10.0 percent, and 34 areas had rates of less than 5.0 percent. Over the year, 319 areas had increases in nonfarm
Tulane Avenue is transitioning from a mixture of businesses operating out of shotgun houses, outdated hotels, bars, auto repair shops and bail bondsmen to a neighborhood of new multi-million dollar apartments and retail centers. This process is technically called “gentrification”, where commercial real estate undergoes a change to a higher and better use. Recently, the Time-Picayune newspaper discussed the changes in commercial real estate on Tulane Avenue with Louisiana Commercial Realty’s president, Robert Hand.   Times Picayune Interviews Louisiana
The last few years have been good to New Orleans, with lower unemployment than the rest of the U.S. and the focus on tourism resulting in jam-packed restaurants and hotels. But it hasn’t always been this way. What is really interesting is, how does the New Orleans’ economy compare to the rest of the U.S.?  This article looks at the New Orleans economy and compares it to the U.S. economy and explains not only the driving forces
The latest apartment to be developed near the new Tulane Avenue hospital is announced. Despite the fact that everyone knows about the billion dollar VA/LSU hospital complex, which is the largest new hospital development in the US-being built on Tulane Avenue-only now has a developer stepped forward to convert a nearby vacant building into apartments. The building is the 17 story, 130,000 square foot building at 144 Elk Place, previously thought to be in a poor location: not close enough
The numbers are out, but the numbers behind the published numbers will startle you. Yesterday the Bureau of Labor Statistics released the latest numbers on national unemployment rate; but the government also released numbers on Metropolitan Statistical Areas which include New Orleans and is included in this analysis. What Are Metropolitan Statistical Areas? The Office of Management and Budget defines statistical areas for the metropolitan and micropolitan areas of the United States and Puerto Rico.
The past few months have witnessed several large commercial real estate transactions in New Orleans, including hotels, retailers and warehouses, emphasizing that New Orleans is a diverse market with buyers who have confidence in the future of commercial real estate and are willing to invest millions. Recently there were 14 big money transactions  in New Orleans commercial real estate, and here are the specifics: Lake Forest Plaza Sells Lots to CVS When he is not spending time
Of those that own commercial real estate, there are more assets in rental property than in IRA’s, 401(k)’s and the median net worth of Americans. In the 2010 census, Americans were asked where they invested their money. Of the 118.554 households , the largest category of asset was the Interest Earning Account at a Financial Institution, with 69.8% of the households investing in that category. The second highest category was asset was a home at
The West Bank was not affected by Hurricane Katrina, except that the population increased dramatically there and apartment occupancy skyrocketed. One beneficiary was 94 percent occupied Baywood Apartments, previously Carlyle Apartments, which was sold last month for $18,000,000. The buyer was not local, a real estate investment company in California called Delta Alliance, founded by Robert Warren with a typical started at the bottom pedigree: President of Investor Property Services (IPS), a 30 year old
Drugs are a big money business. Especially legal drug stores like Walgreens. Who else could justify paying $94 per square foot for land and a beautiful building only to demolish the building? That’s New Orleans commercial real estate at work utilizing the principal of highest and best use. The result is the most profitable businesses can make it feasible to acquire the best locations, driving the price to new market levels. Here is a secret to successful
For Immediate Release New Orleans Commercial Real Estate Professional Discusses Tourist-Oriented Markets New Orleans — March 29, 2013 — Robert Hand, CCIM, president of New Orleans based Louisiana Commercial Realty, discusses commercial real estate activity in tourist-oriented markets in the March/April issue of Commercial Investment Real Estate, the magazine of the CCIM Institute. Robert explains the challenges of commercial real estate development for local a vacant 8-story building on Canal Street, which is now called
New Orleans commercial real estate depends on a thriving national economy. We just experienced, in 2008, the worst recession in history, and New Orleans managed to pull through due to reconstruction spending which kept the unemployment rate in the 4%-5% range compared to the national average at 7%-9%. As the FEMA funds dwindle down, the national economy will play a bigger role in the continued growth of the local economy, which is driven by the
The millionaire matchmaker hit New Orleans commercial real estate recently with these big money transactions for banks, shopping centers and hotels. Examining commercial real estate development in New Orleans gives us an idea of where the future growth will be, and these 6 projects are good indicators of big money activity. Once Tallest Building In New Orleans Sells For $3.4 Million The 108 room St. Christopher Hotel at 200 Magazine sold in 2011 for $3,430,000 to David
The third estimate for how fast the economy grew last quarter is out, and the answer is 4/10 of one percent. Real gross domestic product — the output of goods and services produced by labor and property located in the United States — increased at an annual rate of 0.4 percent in the fourth quarter of 2012 (that is, from the third quarter to the fourth quarter), according to the “third” estimate released by the
Commercial real estate is known for high value transactions, and New Orleans has its share of movers and shakers looking to put commercial property to its highest and best use. From New Orleans Cold Storage To Bagging Plastic Pellets New Orleans is almost 300 years old and was once the largest port in America, before there was an America. In 1886, New Orleans Cold Storage was founded to make ice for the rail cars and sailing
Commercial real estate activity in New Orleans cooled down in the first quarter of 2013, after a heated 4th quarter in 2012 when buyers hurried to close by the end of the year. There is currently 9.4 million square feet of commercial space for sale at a total sale price exceeding $800 million, and 10.4 million square feet for lease, but the number of listings varies among the eight major New Orleans commercial real estate
If revenues are any sign of economic health, the economy is in the best shape in years. For the 12 months ending 2012, revenues from all 50 states and DC from state and local taxes totaled $399 billion, up $97 billion from the previous period, according to the latest census. The chart below shows the tax revenues for the states for the latest 12 month period, in millions.   Tax Revenues, in Millions  Louisiana Tax
One aspect of a vibrant economy is that businesses and commercial real estate always moves from weak hands to strong hands, and recently, several large commercial real estate properties did just that. The most powerful New Orleans economic driver is the hospitality industry, a shift originating in the 1980’s that moved New Orleans away from the petroleum industry toward hotel, restaurant and retail development. One sale for $12,475,000 was 881 Convention Center Boulevard, the Hyatt Hotel brand called
Federal Tax Policy with Fiscal Cliff Updates Federal tax code has not substantially changed for over two decades. 2013 brings a new set of rules and guidelines for all U.S. tax payers. Keep in mind that filing for 2013, is not due until April 2014. Individuals, families and businesses across the board (not only higher-income individuals or households) will be to some degree, impacted by federal tax rate changes negotiated through the fiscal cliff deal.
New Orleans’ CityBusiness magazine interviews Robert Hand, President, Louisiana Commercial Realty, on New Orleans’ commercial real estate. New trends show there is some speculation in buying of commercial properties that have been on the market much longer than the average property. This is a classic sign of a healthy commercial real estate market. here is the text of the article. “Office and retail space in the New Orleans region is moving with increased frequency, and many of
New Orleans’ Industrial real estate supply is up, lease prices are up but sale prices are down. In the industrial sector so far in the month of November, there are 110 properties for sale totaling 3.2 million square feet, an 18 percent increase in supply over the last 12 months. The average asking sale price is $39.48 per square foot, down about two percent from the last 12 months, and the average asking lease rate
In June 2006, Robert Armbruster purchased a 40,000 square foot of land at 1667 Tchoupitoulas for $1,100,000 financed by Gulf Coast Bank.  Just 2 blocks from the New Orleans Convention Center and even closer to the recently repurchased defunct Entergy Power Plant, $1.1 million appeared to be a good deal for the property at that time.  After a few years of not developing the property, Armbruster gave the property back to the bank.  In 2009,
The Louisiana unemployment rate has been lower than the national rate 90 percent of the time since 2002. Most of the variance occurred during several months in 2005 due to Hurricane Katrina, but since then the Louisiana unemployment rate has been consistently below the national average. Louisiana Labor Force Highest Since 2005 The Louisiana labor force is at its highest in years at 535,000 workers and the number of those employed is now 499,000. The number
The Bureau of Labor Statistics released the latest economic news today that the unemployment rate was 7.9 percent but that doesn’t tell the whole story. How many people are working? The civilian labor force is 155.6 million, up 578,000 in October, and the participation rate is 63.8 percent. How many new jobs were added in October? Total employment for October 2012 rose by 410,000 and nonfarm employment rose in October by 171,000. How many people
You already should know that 3rd quarter GDP increased 2% compared to 2nd quarter’s 1.3%, but what you really need to know is why and what is driving the economy. It is really the federal government-just in time for the election. The acceleration in real Gross Domestic Product in the third quarter primarily reflected the following: an upturn in federal government spending, a downturn in imports, an acceleration in consumer spending, a smaller decrease in
The highest price in New Orleans commercial real estate history was paid last week for vacant land on Tulane Avenue, evidencing growth that has surprised everyone. This article chronicles  why property values have increased so dramatically and how to spur growth in a city known for checkerboard development. The 35,000 square foot site at Tulane and Galvez, near the Dixie Brewery, was the second largest tract of land on Tulane Avenue for sale and was
Just out today: the economy is still growing, although at a slower pace. The Gross Domestic Product for the 2nd quarter of 2012 increased at 1.3%, compared to the previous quarter which grew at 2.0%. It’s like driving down the interstate at 60 miles per hour and you enter construction zone and slow down to 35 miles per hour; you are still moving forward but at a slower speed. You have less momentum. The chart
The household median value of rental real estate is $170,000 but the value in stocks is only $18,300, according to the US Census Bureau,  which explains why the economy could experience an extended period of slow growth not seen by anyone living today. The reason having so much in real estate will have such an impact on us is due to an economic term called “The Wealth Effect”, which states consumers will spend more money if
Spending on tourism grew faster than the economy in the first quarter 2012 with an annual growth rate of 3.4%, compared to #GDP growth at 1.9%. Those areas dependent on tourism should continue to see better than average growth.  New Orleans is a good example of how cities have capitalized on tourism spending, shifting the driver of their economy away from oil to tourism. The change originated in the early 1980’s with the building of the
Over the last three months, New Orleans’ commercial real estate has experienced an 8% increase in the supply of industrial square footage for sale, an 8% increase in shopping centers and a 17% increase in land, but a 5% decline in retail properties. This additional supply in square footage of industrial and land is confirmed in the table below by the percent change in the number of listings, but not in the shopping center sector where
Somebody must have leaked to Obama today’s release of manufacturing profits showing a 9.45% increase in after-tax profits, from 134 billion in the 4th quarter of 2011 to 146 billion in the 1st quarter 2012, which caused him to claim the private sector is OK. Drill down to the specific industries and you will see that the private sector is not OK. It’s true that after-tax profits were higher than in any 1st quarter period since
The Bureau of Economic Analysis released GDP growth by state today, showing Louisiana ranking in the bottom 40% and Mississippi in the bottom 20%,  among all 50 states. Broken into quintiles, or 5 groups with 20% each, Louisiana ranked in the 2nd quintile and Mississippi in the lowest quintile. The map below shows GDP growth by state with the highest growth shown in the dark blue states and the slowest growth shown in the orange
Just out today is the actual number for GDP growth for the 1st quarter of 2012, showing a slowing of growth to an annual rate of 1.9% from the 4th quarter 2011 of 3.0%, a 36% drop in activity. The 1st quarter advance estimate was 2.2% GDP growth but with more information now available, we have a second estimate of 1.9%. These are annual growth rates in percent change from the preceding quarter. A slowing economy
Top employers in New Orleans. Company Type of Business Employment Ochsner Health System Health Care 9,107 St. Tammany Parish Public School Board Elementary & Secondary Schools 7,651 Jefferson Parish School Board Elementary & Secondary Schools 7,000 Northrop Grumman Ship Building & Repairing 5,400 LSU Health Sciences Center New Orleans Colleges & Universities 5,000 Tulane University Colleges & Universities 4,410 Jefferson Parish Government Government 3,671 City of New Orleans Government 3,500 East Jefferson Hospital Health Care
Today, one of the best measurements of the strength of the economy-the Leading Economic Index-showed a decline in April of 0.1 percent, in contrast to March’s 0.3 percent increase and also February’s 0.7 percent increase. A declining Leading Economic Index has predicted 7 of the last 8 recessions, but this does provide a signal of possible slowdown which could lead to falling commercial real estate prices; however, that could be followed by lower interest rates due
If you want to know how healthy the economy is, just watch the consumer. The US economy is one-third manufacturing driven and two-thirds consumer driven, and consumer spending depends on personal income. When the consumer spends, businesses grow, causing them to lease additional space and open new locations, causing demand for new warehouses for distribution and manufacturing and benefiting many sectors of commercial real estate. Just out today is personal income for March 2012, which
This economy is like your car on the highway when you approach a school zone: you are still moving forward but with less momentum. Just out is  #GDP for the 1st quarter 2012 which grew at 2.2%, meaning we are still out of the severe recession of 2008, but growth is slowing compared to the 4th quarter GDP growth of 3%. For commercial real estate, this leads to these six consequences: Slower economic growth means
Dr. Tichenor died at age 85 but his company is alive and well, delivering toothpaste, mouthwash and catchy slogans such as: Reduce harmful emissions. Gargle. Wence, Repeat. Why fight bad breath when you can kick the crap out of it. In January 2012, the company got $1.1 million from the Solomon Group for their building at 819 Girod, where they first got started selling half a billion bottles of mouthwash. Dr. Tichenor was wounded in battle in
The last remaining vestige of Heisman Trophy winner Reggie Bush, his penthouse condo at One River Place, was sold for $1.975 million on February 8, 2012, down 16% from his $2.3 million dollar asking price. Reggie came to the Saints in 2006 and rushed for 565 yards, his best year because he also had 742 receiving yards, but he was traded in 2011 to the Miami Dolphins where he rushed for 1,086 yards. You might remember that the
17 years is a long time to reap a 259% return, but that’s how New Orleans commercial real estate works. Back in 1995 when the Resolution Trust was liquidating Landmark Land assets, the 1.248 acres at 1709 Poydras Street, opposite the Mercedes Benz Superdome, was purchased for $1.35 million by the team of Bob Merrick, owner of Latter & Blum, and Rathborne Properties, developer of Elmwood Business Park. Last month, the property was sold to Zelia
It’s not timely, but today’s release by the Bureau of Economic Analysis on personal income growth does show the fastest growing counties in Louisiana: Bossier, Iberville, Catahoula, LaSalle, Natchitoches and St. Bernard, with greater than 5.1% annual growth for 2010. The map below shows the fastest growing counties in dark blue, and the big surprise is the Mississippi Delta area with 13 counties ranked in the top category. The fastest growing county in the Southeast
There are only 3 New Orleans commercial properties priced over $2 million sold so far in 2012, with the highest sale exceeding $18 million for the old Amoco office building. The largest commercial real estate market in New Orleans is the office category, but it is only one of 5 major types of commercial property. New Orleans MSA commercial real estate properties currently listed for sale total over one billion dollars and include at least 2,300 commercial properties, divided into these 5 basic
On Friday, US Senator David Vitter sided with developers who face astronomical costs in developing in areas regulated by the US Army Corps of Engineers who now require 2.4 acres of land to be mitigated for every acre developed, compared to previous method requiring 1.6 acres. This affects New Orleans commercial real estate development since this amounts to a 50% price increase. Vitter spoke at a public meeting of the Mississippi River Commission (MRC) which
Just out today is the news that personal income for last month increased 0.2%, meaning that the consumer is doing well which can spur consumer spending which can create demand for commercial real estate development. Personal income increased $28.2 billion, or 0.2 percent, and disposable personal income (DPI) increased $18.9 billion, or 0.2 percent, in February, according to the Bureau of Economic Analysis. Personal consumption expenditures (PCE) increased $86.0 billion, or 0.8 percent.  In January,
Real gross domestic product (GDP) — the output of goods and services produced by labor and property located in the United States — increased at an annual rate of 3.0 percent in the fourth quarter of 2011 (that is, from the third quarter to the fourth quarter), according to the “third” estimate released today by the Bureau of Economic Analysis.  In the third quarter, real GDP increased 1.8 percent. The chart below of GDP shows the
The Bureau of Economic Analysis reported today that Louisiana had growth in personal income of 4.83%, comparing 2011 to 2010, which ranks 34th among all states. The highest growth was North Dakota at 8.13% and the lowest growth was Maine at 3.35%. The reason we examine personal income is because it is a driver of growth for the economy and influences commercial real estate demand. Personal income growth drives commercial real estate demand because it