cropped-logo4.jpgYour 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 not like buying a stock where there is a published price, with many buyers and sellers creating a competitive market. Market prices can also be widely different from appraisal valuations. That is why knowing current price trends can help you make better decisions on Commercial Real Estate.

Pricing Tailor Made To Your Situation

The chart below shows prices of office property in various markets, ranging from state to Metropolitan Area, County (Parish) to City, and shows the change in prices from 2006. That way, you can derive an opinion of the trend in prices, in your location, in the property type that interests you.

chart office lease  price trends metairie

chart office lease price trends Metairie




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 Metairie average $17.31 per square foot, and you rent 1,000 square feet, the total annual rent is $17,310, or $1,442 per month. CAM charges could easily be $2-$5 per square foot extra. The table below shows the change in lease rates for office property in Metairie, compared to the Parish, New Orleans Metropolitan Area  and Louisiana, for the last 3 months and year to date. The Metairie area and the parish have seen prices increase for office property faster than the state average and much faster then the New Orleans area.

table office lease prices

table office lease prices


For more information on office leasing including CAM charges, read our article Office Market Trends.

For an FREE analysis on your commercial property or help leasing office space, contact Louisiana Commercial Realty at 504-289-8172.

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 is a 39% federal plus a 25% state New Market Tax Credit for development in low income areas. There is a 25% tax credit for Sound Recording expenditures. Here are 14 major incentives and a summary of benefits all in one list.

14 Major Business Incentives Louisiana Offers

1. The Digital Media Incentive provides a tax credit of 25% of qualified production expenditures for state-certified digital interactive productions in Louisiana and 35% tax credit for payroll expenditures for Louisiana residents.

2. Economic Development Award Program assists publicly owned infrastructure for industrial or business development projects that promote targeted industry economic development and that require state assistance for basic infrastructure development.

3. The Enterprise Zone (EZ) program is a jobs incentive program that provides Louisiana income and franchise tax credits to a business hiring at least 35% of net new jobs from one of four targeted groups. EZs are areas with high unemployment, low income or a high percentage of residents receiving some form of public assistance. A business must create permanent net new jobs at the EZ site. A business is not required to be located in an EZ. A business does not have to invest money, only create additional jobs.


4. The Gulf Opportunity Zone Act of 2005 (GO Zone) provides federal and state tax incentives for business development in parishes most affected by hurricanes Katrina and Rita.

5. The Industrial Tax Exemption (ITE) Program provides property tax abatement for up to 10 years on a manufacturer's new investment and annual capitalized additions. This exemption applies to all improvements to the land, buildings, machinery, equipment and any other property that is part of the manufacturing process.

6. The Live Performance Tax Credit program offers a fully transferable tax credit that can be sold or applied against Louisiana tax liability. Tax credits received for infrastructure cannot exceed $10 million per project and are also subject to a $60 million annual cap. There is no annual cap on the production credits. The tax credit value increases with higher levels of certified expenditures, as outlined below:

In addition to the baseline tax credits for live performance production and infrastructure, the producer may also qualify for additional incentives, including:

7. Mentor-Protégé Tax Credit program enhances Louisiana's business environment for new construction companies. This program provides technical and economic benefits to Louisiana-based contractors who will create and/or retain jobs for Louisiana citizens, expand the state's economy and increase available quality jobs.

8. The Modernization Tax Credit program provides a 5% refundable state tax credit for manufacturers making capital investments to modernize or upgrade existing facilities in Louisiana.

9. The Motion Picture Industry Development Tax Credit provides a 30% tax credit on qualified motion picture expenditures with no project or program caps. Payroll expenditures for Louisiana residents qualify for an additional 5% tax credit (35% effective total credit rate).

10. The New Markets Tax Credit program encourages investment in urban and rural low-income areas to help finance community development projects, stimulate economic growth and create jobs.

Private-sector investors receive credit against federal income taxes. The program allows individual and corporate taxpayers to receive a credit against federal income taxes for making qualified equity investments in Community Development Entities, or CDEs. Credits can be obtained every year the investment is held, for up to seven years of the credit period.

11. The Quality Jobs (QJ) program provides a cash rebate to companies that create well-paid jobs and promote economic development.


12. The Research and Development Tax Credit encourages existing businesses with operating facilities in Louisiana to establish or continue research and development activities within the state.

13. The Restoration Tax Abatement (RTA) program provides five-year property tax abatement for the expansion, restoration, improvement and development of existing commercial structures and owner-occupied residences.

14. The Sound Recording Investor Tax Credit program rebates a 25% refundable tax credit for qualified production expenditures for state-certified sound recording projects.


The Proof Is In The Pudding

Several top businesses have taken advantage of the incentives and have come to Louisiana, such as:


gameloftOn August 15, 2011, Gameloft announced it would open a game development studio in New Orleans and deliver at least one new game title developed entirely at the studio in its first year. Employment will grow to nearly 150 jobs at the New Orleans studio in the next few years, with pay averaging more than $60,000, plus benefits.

Electronic Arts


In 2012, the Electronic Arts moved into the newly-constructed 94,000-square-foot Louisiana Digital Media Center on the LSU main campus. EA now employs nearly 500 workers during the school year. In addition to the LSU students who serve in part-time positions at the center, EA has had success recruiting others in the Baton Rouge area to test children's games and casual games more popular with adult women. Game testers at the center in Baton Rouge coordinate work on a daily basis with studios across the globe, including facilities in Stockholm, London and Bucharest.


ibm"This public-private partnership with LED, IBM and LSU is a powerful example of the triangulation between industry, government and academia that elevates the state's role as a national leader in economic development," said LSU College of Engineering Dean Richard Koubek. "LSU's College of Engineering is committed to developing a mutually beneficial partnership with IBM and LED that stimulates economic growth and helps to meet the workforce development needs of the state."

In addition to long-term workforce solutions, LED offered the company a $17 million grant to reimburse relocation, recruitment and internal training costs; a $5.5 million incentive equivalent to the state's Quality Jobs program for a portion of the IBM center's employment over 10 years; a $5 million grant to offset facility operating costs over 10 years; and the recruitment, screening and training services of LED FastStart®.

LED offered a $30.5 million performance-based grant consisting of state, local and federal funding to build an eight-floor office building as part of a new, mixed-use urban development on Baton Rouge's riverfront. In addition to new Class A office space and 600 dedicated parking spaces, the development would include an 11-floor residential tower and a private recreational terrace joining the buildings above a multilevel parking garage. Leveraging resources of the Baton Rouge Area Foundation, Louisiana secured BRAF’s commitment to build and manage the $55 million total project through its affiliates, the Wilbur Marvin Foundation and Commercial Properties Realty Trust.


General Electric

geIn February of 2012, Brackett Denniston, GE senior vice president and general counsel, joined state and local leaders to announce the creation of the GE Capital IT Center of Excellence in New Orleans. “We took our time to select a location for this important center,” said Denniston. “We looked all over the country but, after much consideration, New Orleans rose to the top of our list.” The center will be home to 300 high-quality technology jobs and serve as a major resource for GE Capital employees across the nation. Executives announced GE Capital will occupy 60,000 square feet of office space in the New Orleans Central Business District.

For more information, go to



Times Picayune NMTC Article

US Treasury NMTC


Louisiana Commercial Realty

Commercial Real Estate Experts
Robert Hand, MBA, CCIM, SIOR
Licensed in Louisiana & Mississippi
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