by Robert Hand, MBA, CCIM, SIOR
Louisiana Commercial Realty uses the latest technology to help clients uncover opportunities in commercial real estate, and we are constantly analyzing prices so our clients can be ahead of changes in trends. This article is the first in a series to provide an overview of average prices of commercial real estate.
We will drill down into prices and trends in New Orleans, Metairie and Baton Rouge, and review the top 7 sectors of commercial property, including:
Lease prices in New Orleans averaged $19.04 per square foot as of April 1, up 2.4% from last month but up 15% from one year ago, despite the fact that supply increased 37% with 766,000 square feet for lease compared to 558,000 square feet one year ago. There are 160 commercial properties for lease and 6 properties were leased last month, which is the average for the last 7 years; however, there has been a wide range of transactions, ranging from 2 to 18 properties leased each month. The average property is on the market for 355 days.
Sale prices in New Orleans averaged $144 per square foot as of April 1, down 2% from last month, but up 3% from 2 months ago. Despite the supply of property for sale increasing 37% to 388,000 square feet from one year ago, sale prices fell 1.5% during the sale period. There are 41 retail properties for sale, about the same as one year ago, resulting in a change in the market to larger retail properties offered or sale, increasing the average to 9,500 SF from 7,500 SF one year ago.
For more information on prices, read our articles:
Office Space For Lease Defies Law of Economics