SLIDE 1
PRESENTED BY DAVID A. GLEASON, CCIM Broker Associate NAI Latter & Blum
2018
PRESENTED BY DAVID A. GLEASON, CCIM Broker Associate NAI Latter - - PowerPoint PPT Presentation
PRESENTED BY DAVID A. GLEASON, CCIM Broker Associate NAI Latter - - PowerPoint PPT Presentation
2018 PRESENTED BY DAVID A. GLEASON, CCIM Broker Associate NAI Latter & Blum MARKET SUMMARY Sale & Lease Rates are Pretty Boring. Very Little Change from 2016 Everyone is Looking for Great Deal Landlords Beware
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MARKET SUMMARY
- Sale & Lease Rates are Pretty Boring.
- Very Little Change from 2016
- Everyone is Looking for “Great Deal” – Landlords Beware
- Sellers are Still Hanging Tough
2017 Lafayette Parish Totals Sold – 29 transactions Leased – 59 transactions
2018
Statistics based on Louisiana Commercial Database data
SLIDE 4
MARKET SUMMARY
2018
10 20 30 40 50 60 70 80 90 100
Industrial Market Activity
Months Inventory Active Listings New Listings Sold Listings
SLIDE 5
HERE’S WHY…
Average Prices of Oil Per Barrel
2013 2014 2015 2016 2017 $3.74 MMBtu $4.37 MMBtu $2.63 MMBtu $2.52 MMBtu $3.00 MMBtu SWEET CRUDE OIL
2015 2016 2017
$52.36 $44.81 $53.32 BRENT CRUDE OIL
2015 2016 2017
$52.35 $43.55 $53.33
2018
***As of March 16, 2018, price per barrel = $61.19 ***MMBtu = 1,000,000 British Thermal Unit
SLIDE 6
$10.00 $30.00 $50.00 $70.00 $90.00 $110.00 $130.00 Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Dec-17 Mar-18 Brent Crude Oil Sweet Crude Oil
OIL PRICES PER BARREL
2018
Oil prices through March 28, 2018
SLIDE 7 $14.45 $14.45
Source: Lafayette Economic Development Authority 2013 2014 2015 2016 2017
1,761 1,862 978 511 875 108 111 78 47 61
US LA
US vs. LOUISIANA RIG COUNT
**The Louisiana Rig Count statistic represents the number of rigs operating in Louisiana. This number includes rigs in North Louisiana, South Louisiana Inland Waters, South Louisiana Inland, and Louisiana Offshore. The US Rig Count represents the number of rigs that are operating in the United States.
2018
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COMMERCIAL BUILDING PERMITS
66 63 65 39 47 2013 2014 2015 2016 2017
# OF PERMITS ISSUED
2013 2014 2015 2016 2017
PERMITS ISSUED IN DOLLAR VALUE
6 INDUSTRIAL PERMITS ISSUED IN 2017 TOTALING $2,415,464
THIS ONLY REFLECTS LAFAYETTE PARISH
2018
$78M $103M $133M $59M $72M
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SMALL 3,000-5,999 SF MEDIUM 6,000-11,999 SF LARGE 12,000+ SF NEW 1-10 YEARS EXISTING 10+ YEARS
BREAKING DOWN THE MARKET
2018
SLIDE 10
AVERAGE LEASED RATES
$63.40 $91.00
Small - 3,000 - 5,999 SF
$5.00 $5.50 $6.00 $6.50 $7.00 $7.50 $8.00 $8.50
NEW EXISTING
$8.06 $6.53 $7.91 $6.61
Average Annual Leased Prices Per Square Foot
2017 2016
2018
SLIDE 11
SMALL LEASES IN 2017
158 Industrial Pkwy April 2017 202 Thruway Park Rd. June 2017 209 Marcon Drive October 2017 5,724 SF - $8.39 PSF 5,100 SF - $6.35 PSF 5,000 SF - $6.72 PSF 105 Park W Drive May 2017 4,000 SF - $7.50 PSF
2018
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AVERAGE LEASED RATES
$63.40 $91.00
$5.00 $5.50 $6.00 $6.50 $7.00 $7.50 $8.00
NEW EXISTING
$7.60 $6.25 $8.00 $6.00
Average Annual Leased Prices Per Square Foot
2017 2016
2018
Medium - 6,000 - 11,999 SF
SLIDE 13
2018
MEDIUM LEASES IN 2017
102 Savonne Road May 2017 237 Burgess Drive May 2017 7,000 SF - $4.97 PSF 11,660 SF - $6.69 PSF 3501 Hwy 90 East May 2017 6,400 SF - $9.38 PSF 1042 Forum Drive May 2017 8,000 SF - $9.00 PSF 528 La Flamme Rd. October 2017 9,700 SF - $7.42 PSF
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AVERAGE LEASED RATES
$63.40 $91.00
$3.00 $3.50 $4.00 $4.50 $5.00 $5.50 $6.00 $6.50 $7.00 $7.50
NEW EXISTING
$4.80 $4.50 $7.24 $5.44
Average Annual Leased Prices Per Square Foot
2017 2016
2018
Large - 12,000+ SF
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LARGE LEASES IN 2017
906 Garber Road October 2017 1352 Petroleum October 2017 12,000 SF - $6.50 PSF 12,000 SF - $8.00 PSF
2018
119 Southpark Rd. October 2017 12,000 SF - $7.95 PSF
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AVERAGE LEASE RATES - OVERVIEW
Small
PRICE PER SQUARE FOOT
Existing
Medium Large
$ 9 $ 8 $ 7 $ 6 $ 5 $ 4 $ 3 $ 2 $ 1 $13 $ 12 $ 11 $ 10
New
$ 0
$8.00 $6.50 2016 $7.91 $6.61 2017 $7.60 $6.25 2016 $8.00 $6.00 2017 $4.80 $4.50 2016 $7.24 $5.44 2017
2018
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$63.40 $91.00
$30.00 $40.00 $50.00 $60.00 $70.00 $80.00 $90.00 $100.00
NEW EXISTING
$91.00 $63.40 $82.18 $48.56
2017 2016
2018
AVERAGE SOLD RATES
Small - 3,000 - 5,999 SF Average Sold Prices Per Square Foot
SLIDE 18
2018
SMALL SALES IN 2017
119 Wall Street October 2017 101 N Pat Street June 2017 4,000 SF - $53.33 PSF 4,500 SF - $32.00 PSF 103A Balboa Drive March 2017 4,000 SF - $53.33 PSF 113 Lions Club February 2017 3,500 SF - $76.86 PSF 109 Jared Drive June 2017 4,000 SF - $53.33 PSF
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$63.40 $91.00
$30.00 $40.00 $50.00 $60.00 $70.00 $80.00 $90.00 $100.00
NEW EXISTING
$51.52 $40.45 $90.16 $49.40
2017 2016
2018
AVERAGE SOLD RATES
Average Sold Prices Per Square Foot Medium - 6,000 - 11,999 SF
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MEDIUM SALES IN 2017
3501 Hwy 90 East February 2017 3940 Verot School Road October 2017 111 Credit Drive September 2017 6,994 SF - $45.04 PSF 11,000 SF - $63.64 PSF 8,700 SF - $51.72 PSF 1222 Wall Road October 2017 6,100 SF - $90.16 PSF
2018
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$63.40 $91.00
$30.00 $40.00 $50.00 $60.00 $70.00 $80.00 $90.00 $100.00
NEW EXISTING
$91.00 $63.40 $75.23 $38.76
2017 2016
2018
AVERAGE SOLD RATES
Average Sold Prices Per Square Foot Large – 12,000+ SF
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2018
LARGE SALES IN 2017
130 N Bernard Road February 2017 118 Nova Drive September 2017 16,000 SF - $53.13 PSF 35,313 SF - $48.14 PSF 3501 Hwy 90 East February 2017 31,544 SF - $50.72 PSF 1187 SE Evangeline Thruway May 2017 32,000 SF - $59.38 PSF 2720 W Willow Street April 2017 12,960 SF - $75.23 PSF
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AVERAGE SOLD RATES - OVERVIEW
Small
PRICE PER SQUARE FOOT
Existing
Medium Large
$ 90 $ 80 $ 70 $ 60 $ 50 $ 40 $ 30 $ 20 $ 10 $130 $ 120 $ 110 $ 100
New
$ 0
$91.00 $63.40 2016 $82.18 $48.56 2017 $51.52 $40.45 2016 $90.16 $49.40 2017 $91.00 $63.40 2016 $38.76 2017 $75.23
2018
SLIDE 24
Creative Transactions
➢ SWACO and Burner – Petroleum Pkwy ➢ Two buildings, TWO owners – One sublease ➢ 111 Nova ➢ 7 year tiered lease ➢ 33,000sf starting at $9,500/mth or $3.43/sf ➢ Petroleum Parkway Sale – Robert Minyard & Bart Broussard ➢ Zedi – Shenandoah Park ➢ Purchase two buildings and renovate ➢ Subleases – Lots of these happening in 2017
2018
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2018
➢ Texas Oil is booming! Fracking in Midland/Odessa. ➢ Offshore oil companies are coming up with solutions to compete with
- fracking. Good news for South Louisiana!
➢ Agents in our market are having a hard time explaining all of the Personal Injury Attorney billboards along our major corridors. (Ex. Trucking company) ➢ There is a feeling that Louisiana is NOT a business friendly environment. Major companies are concerned about opening their doors in our state.
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What’s Happening in the Marketplace?
➢ 2016 turned out to be a mirror image of 2015… ➢ Wow! We can say the same thing for 2017. ➢ Buyers and Tenants have a lot of options. We have more inventory than we’ve had in a very long time. ➢ I believe we are closer to 20% vacancy ➢ The best deals are still being found in leasing as opposed to buying. ➢ Very true for 2017 ➢ Ex: cryptocurrency, Medi Trans ➢ We are in a tenant-favorable environment and they are asking for the moon. ➢ And the stars in 2017 ➢ The phones are starting to ring asking for Industrial properties. ➢ True but we are getting land inquiries also
2018
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This is how we all feel about the industrial market right now!
2018
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Looking ahead to 2018…
➢ Oil Prices Remain Steady… Above $50 Per Barrel ➢ There is A Lot More Confidence in the Market Relative to the Near Future Than We’ve Heard in A Long Time ➢ Overall, the Industrial sector has become more diversified. Other industries are coming into the marketplace and absorbing industrial space. ➢ A factor that has prompted this change is aggressive lease rates. ➢ Acadiana now has a “healthy” supply of inventory. ➢ The buzz is that we should see some change in activity toward the 4th quarter.
2018
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