Commercial Real Estate Companies in Louisiana

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					              C O M M E R C I A L R E A L E S TAT E


              REVIEW                         U.L.COLEMAN COMPANIES
IREM MACY AWARD WINNING NEWSLETTER                                                                                                 SPRING 2005




   T            H E U . L . C O L E M A N C O M PA N I E S
               The U. L. Coleman Companies have served the Louisiana and Texas markets for
           32 years in the areas of Real Estate Brokerage, Leasing, Property Management, Asset
                                                                                                             1 9 7 3 - 2 0 0 5


                                                                                                                   2
      Management, Market Research, Consulting, Commercial, Industrial, and Multifamily
      Development, and Construction Services. As a result of this experience, we have compiled
      market information that is useful to those interested in and affected by the commercial real
      estate market. The purpose of this report is to inform investors, managers, clients, and business
      associates of market trends and conditions for the Shreveport-Bossier City area. All data is
      based on information quoted by building owners and managers and other sources as noted,
      and is factual and historical. No forecasts or conclusions are made.
                                                                                                                  3YEARS
                                                                                                             OF EXCELLENCE




   A                PA RT M E N T M A R K E T
                  At the end of the fourth quarter of 2004, the Shreveport-Bossier City area apartment occupancy was 93.9%, a rise
               of 1.2% when compared to the fourth quarter of 2003. Our apartment market survey examines 95 properties in the
      Shreveport-Bossier City area containing 16,495 units. From the fourth quarter of 2003 to the fourth quarter of 2004, market-
      wide rental rates increased from $0.627 per square foot to $0.651 per square foot.
           There are three new multi-family properties in the Shreveport-Bossier area. The Cane Brake Apartments, located in
      southeast Shreveport, the Stockwell Landing apartments, located in northeast Bossier City, and the Lexington Place
      Apartments, located in central Bossier City.
           Over one third (38%) of the apartment units were reclassified as of the first quarter of 2001. This was the first reclassifi-
      cation of the apartment units since June of 1990. Factors affecting reclassification of a property include, but are not limited
      to, rental rates, age of property, and overall condition. Due to the reclassification, the following changes are reflected in the
                                                                                data starting in the first quarter of 2001: Class A
                                                                                decreased 38% or 948 units; Class B decreased 19%
                                                                                or 1,410 units; Class C decreased 10% or 484 units;
                                                                                and Class D increased 206% or 2,311 units. Three
                                                                                apartment complexes totaling 531 units were
                                                                                removed from the survey. These complexes no longer
                                                                                met the criteria for market rate apartments.
                                                                                      The chart shows the increase in rental rates
                                                                                compared to any change in the Consumer Price
                                                                                Index (CPI), with the rates rising 2.8% over the last
                                                                                two quarters, while the CPI rose 0.8% during the
                                                                                same period.
S                 I N G L E - F A M I LY R E S I D E N T I A L H O U S I N G – N E W D E V E L O P M E N T
              By the end of the fourth quarter 2004, a total of 1,055 new home permits had been issued in the Shreveport-Bossier
            City combined market, a 6.4% increase over the same period in 2003. During the fourth quarter of 2004, 229 permits
for new homes were issued, compared to 264 permits during the same time period in the previous year. The following table
displays a history of the building permit activity in value and number for 1998 through the fourth quarter of 2004.
 SINGLE FAMILY BUILDING PERMIT VALUE AND VOLUME                                                                                                                         Our market survey includes 49 subdivisions,
 SHREVEPORT                  1998                1999               2000             2001                2002                2003               2004 * selected to represent the development of new
 Permits, Value**            $40.2              $50.0              $55.4            $58.1               $73.8             $100.3             $105.9 single-family homes in the Shreveport-Bossier
 Permits, Number               258                 358               330               367                 400                 555                562
                                                                                                                                                               City area. This is not intended to represent the
 BOSSIER CITY
                                                                                                                                                               entire single-family market, but gives a good
 Permits, Value**            $24.5              $34.1              $29.6            $34.0               $39.1              $62.1               $72.1
 Permits, Number               184                 256               250               285                 316                 437                493
                                                                                                                                                               indication of the market’s strength by reporting
 COMBINED                                                                                                                                                      the development within new single-family sub-
 Permits, Value**            $64.7              $84.1              $85.0            $92.1             $112.9              $162.4             $178.0 divisions. Data is drawn from the public record
 Permits, Number               442                 614               580               652                 716                 992             1,055 for reported home and lot sales.
                  Source: LSUS Center for Business & Economic Research *2004 data represents year end figures (**In millions of dollars)                                Please keep in mind that the above-
mentioned building permits represent the total area home construction during the period. The table below, “Houses and
Lots Sold,” presents only those in the 49-subdivision sample. Four new subdivisions were added to our market survey
sample during 2004. All four of the
                                                                                   HOUSES AND LOTS SOLD                       1998                     1999                  2000                  2001                 2002                  2003               2004 *
subdivisions added during 2004 are
                                                                                   Lots Sold                                    368                     303                    261                   232                  281                   547                761
located in southeast Shreveport, Average Price                                                                           $39,695                 $37,583                $38,834               $39,882              $27,429               $37,198              $34,787
inside city limits. These include Houses Sold                                                                                   835                     780                    729                   887                  977                1,498               1,499
Pierremont Place, Kings Crossing, Average Price                                                                        $153,264                 $167,359               $175,298             $171,515              $168,262             $187,693 $194,353
St. Charles Place, and Lakeside at                                                                                                                  Source: U.L.Coleman Properties, Ltd. Quarterly Market Report
                                                                                                   Note: The data are based on house and lot sales in 46 newly developed subdivisions. Ten new subdivisions were added to the survey sample in the fall of 2003.
Long Lake. The new housing market                                                                                                         The entire market is not represented. *2004 data represents year end figures
remains strong as of the end of 2004,
with newly constructed houses pricing at an average of over $194,300, with an average lot pricing at over $34,700. We will
continue to monitor the development of new subdivisions and their impact on the market.




O                   FFICE MARKET
        Downtown: U. L. Coleman Company, Ltd., conducts surveys of the 22 multi-tenant office buildings composing 2.19 million
    square feet of rentable space in the Shreveport Central Business District at the end of the first and third quarters of each
year. The latest survey indicates an overall occupancy rate of 82%, which is down 1% from the first quarter of 2004. Average
rental rates ranged from $9.65 to $10.61 per square foot.
     Two downtown office build-
                                         DOWNTOWN OFFICE MARKET       1998                   1999                   2000                     2001                   2002        2003   2004 *
ings sold in 2004. The first,
                                         Occupancy                      75%                    79%                    78%                     79%                    79%         84%    82%
located at 320 Texas Street (5,600 Upper Rent, Avg.                   $9.72               $10.19                  $10.44                 $10.50                  $10.63        $10.89 $10.61
gross square feet) was sold in Lower Rent, Avg.                       $8.58                 $8.82                  $9.32                    $9.37                  $9.65        $9.84  $9.65
January for $650,000 or $116.07
per square foot to Iberia Bank.
                                         SUBURBAN OFFICE MARKET
The second, located at 213 Texas
                                         Occupancy                      86%                    88%                    87%                     89%                    89%         87%    84%
Street (6,180 gross square feet) was Upper Rent, Avg.              $10.04                 $10.85                  $11.23                 $10.99                  $11.17        $11.86 $12.72
sold in November for $325,000 or Lower Rent, Avg.                     $9.12                 $9.38                  $9.69                 $10.01                  $10.44        $10.78 $11.21
$52.59 per square foot.                                                            Source: U.L.Coleman Properties, Ltd. Quarterly Market Report
                                                                Note: Occupancy rates are for the end of the 3rd quarter; office sampling is done in the 1st and 3rd quarters.
     Suburban: The suburban market                                                                     *As of the 3rd quarter 2004
incorporates 44 multi-tenant office
buildings with a total of 1.73 million square feet of rentable space, including 273,453 vacant square feet. The suburban office
building market occupancy indicates an overall occupancy rate of 84%, which is unchanged from the first quarter of 2004.
Rental rates increased slightly during this period, with a $.26 increase in the average rent quoted.
R              E TA I L M A R K E T
              Occupancy for the overall retail market was 86.7% in the fourth quarter of 2004. The most recent retail development
          in the Shreveport area was the Eastside Plaza, totaling 80,000 square feet, located on Youree Dr., just south of Sam’s Club.
The next major retail center to open will be King’s Crossing, located on the corner of E. 70th Street and Youree Dr. This center is
partially open, with Lowe’s among several stores now open and the remaining businesses opening soon. The center will total
approximately 400,000 square feet, RETAIL OCCUPANCY BY TYPE              1998                1999                    2000                 2001                  2002   2003   2004 *
with the Lowe’s home improvement Regional                                 90%                  87%                    78%                  78%                   81%    91%    89%
center occupying 171,000 square           Community                       77%                  71%                    79%                  83%                   83%    69%    84%
feet. Another retail center now par- Neighborhood                         93%                  91%                    93%                  93%                   94%    89%    88%
tially open is Shoppes at Bellemead, Specialty                            87%                  94%                    93%                  90%                   90%    89%    89%

located on Youree Drive, just north
                                          RETAIL RENTAL RANGE BY TYPE
of E. 70th Street. This center will Regional                     High: $21.75              $19.25                 $16.75               $19.75                $22.50  $23.50 $15.33
house approximately 90,000 square                                Low:   $9.63              $10.88                 $12.75               $13.13                $11.25  $11.00 $10.67
feet of retail and dining space.          Community              High:  $7.86               $8.63                  $9.95                 $7.92                 $8.50  $9.86 $13.43
      One major retail center cur-                               Low:   $6.46               $6.38                  $6.95                 $5.96                 $6.04  $6.39  $8.78
rently under construction in Bossier      Neighborhood           High:  $8.88              $10.67                 $10.25               $10.36                  $9.90  $8.00 $12.25
City is the Louisiana Boardwalk,                                 Low:   $7.78               $8.70                  $7.81                 $7.21                 $8.70  $6.83 $11.25
                                          Specialty              High:  $9.33              $10.43                 $10.89               $11.00                  $9.84 $10.86 $10.90
located on Red River, at the base of
                                                                 Low:   $9.00              $10.03                  $9.32                 $9.78                 $8.80  $9.66 $10.26
the Long-Allen bridge. A Bass Pro
                                                                           Source: U.L.Coleman Properties, Ltd. Quarterly Market Report *As of the 4th Quarter, 2004
Shop has already opened, while
other retail and entertainment space is currently under construction, with openings scheduled to start in May of 2005.
      The accompanying table shows the performance of the individual retail types by occupancy and range of rental rates.
Rates are quoted by managers who often quote a range of rents that encompasses larger and smaller lease spaces.




I            NDUSTRIAL MARKET
         The industrial market is OFFICE/SERVICE CENTER
     comprised of two categories:
office/service center and multi- Upper Rent, Avg.
tenant warehouse. The quarterly
                                      Occupancy

                                      Lower Rent, Avg.
                                                                1998
                                                                 70%
                                                               $6.00
                                                               $5.50
                                                                                    1999
                                                                                      87%
                                                                                   $7.02
                                                                                   $5.94
                                                                                                            2000
                                                                                                              89%
                                                                                                           $6.20
                                                                                                           $5.90
                                                                                                                                                  2001
                                                                                                                                                   83%
                                                                                                                                                 $6.50
                                                                                                                                                 $5.87
                                                                                                                                                                        2002
                                                                                                                                                                         86%
                                                                                                                                                                       $6.64
                                                                                                                                                                       $5.82
                                                                                                                                                                                               2003
                                                                                                                                                                                                77%
                                                                                                                                                                                              $6.89
                                                                                                                                                                                              $6.70
                                                                                                                                                                                                                      2004 *
                                                                                                                                                                                                                       86%
                                                                                                                                                                                                                     $7.02
                                                                                                                                                                                                                     $6.20

survey samples 183,145 square feet MULTI-TENANT BULK WAREHOUSE
of office/service center space, and Occupancy                    88%                  91%                     82%                                 92%                   96%                    98%                    92%
1,259,295 square feet of bulk ware- Upper Rent, Avg.           $2.64               $2.67                   $2.76                                 $2.58                 $2.88                  $2.97                  $3.24
house space. The table is provided Lower Rent, Avg.            $2.26               $2.03                   $2.24                                 $2.58                 $2.88                  $2.54                  $3.10
to show the trends in rental rates                               Source: U.L.Coleman Properties, Ltd. Quarterly Market Report                  *As of the 4th Quarter, 2004

and occupancy for these two property types from 1998 through fourth quarter 2004.




L             O C A L E C O N O M I C U P D AT E ( S E L E C T E D F A C T S )
         Population: This table provides a three-decade review
       of the population statistics for the Shreveport-Bossier
City area, and compares them with state and national figures.
According to the 2000 Census, 76% of the growth in the
                                                                                              POPULATION (IN 1,000’s)
                                                                                              United States
                                                                                              % Change From Prior Period
                                                                                              Louisiana
                                                                                              % Change From Prior Period
                                                                                                                                        1980
                                                                                                                                     226,546
                                                                                                                                       11.4%
                                                                                                                                       4,206
                                                                                                                                       15.4%
                                                                                                                                                                 1990
                                                                                                                                                              248,718
                                                                                                                                                                 9.8%
                                                                                                                                                                4,220
                                                                                                                                                                 0.3%
                                                                                                                                                                                          2000
                                                                                                                                                                                       281,422
                                                                                                                                                                                         13.1%
                                                                                                                                                                                         4,469
                                                                                                                                                                                          5.9%
                                                                                                                                                                                                                   2004 *
                                                                                                                                                                                                                293,687
                                                                                                                                                                                                                   4.4%
                                                                                                                                                                                                                  4,505
                                                                                                                                                                                                                   0.8%
Shreveport Metropolitan Statistical Area was concentrated                                     Caddo Parish                             252.4                    248.3                    252.2                    249.8
in Bossier Parish. Since the 1990 census, the population of                                   % Change From Prior Period                9.7%                   (1.6%)                     1.6%                   (1.0%)
Bossier Parish has increased by 14.2%, while the population                                   Bossier Parish                            80.7                     86.1                     98.3                    103.1
of Caddo Parish has increased by 1.6%. In that same time                                      % Change From Prior Period               26.7%                     6.7%                    14.2%                     4.9%
period, statewide population for Louisiana has increased                                      Caddo and Bossier Combined               333.1                    334.3                    350.5                    352.9
5.9%, and the national population has increased 13.1%.                                        % Change From Prior Period               13.4%                     0.4%                     4.8%                     0.7%
                                                                                                                    Source: Department of Commerce, Bureau of the Census, Louisiana Tech University,
                                                                                                      College of Administrative Research Division, and CCIM Institute *2004 figures are estimates from CCIM Institute.
    Commercial Construction: Comparing the year end totals for 2004 to 2003, the total number of commercial and industrial
construction permits decreased by 3.7%. During the same period, the dollar value of commercial construction permits issued
decreased by 29.8% in Shreveport, while decreasing by 77.1% in Bossier City. The result was a 55.4% overall decrease in
commercial construction permit value. The chart shows the history of commercial construction activity in both cities
through the fourth quarter 2004. Comparing the 2004 and 2003 year end totals, the number of permits decreased from 162 to
156, while the total dollar value of permits decreased from $252.8 million to $112.8 million.




     Employment: At the end of the Year (As of end of the year)                                  1998               1999            2000            2001              2002  2003  2004*
fourth quarter of 2004, preliminary Labor Force (1,000’s)                                       165.4              165.8           165.0           166.1             161.6 165.0 185.0
figures showed the combined Number Employed (1,000’s)                                           158.0              160.1           157.4           154.8             151.3 155.3 175.0
Shreveport/Bossier MSA labor Shreveport/Bossier MSA Unemployment Rate                             4.6%              3.6%             4.0%            7.3%             6.8%  6.1%  5.7%
                                         Louisiana Unemployment Rate                              5.3%              4.2%             5.8%            6.6%             6.3%  5.8%  5.6%
force to be 185,000, with
                                         United States Unemployment Rate                          4.5%               4.1%            4.0%            5.8%             6.0%  5.7%  5.4%
175,000 employed, resulting in
                                                                     Source: Louisiana Department of Labor, Office of Employment Security *As of the 4th Quarter, 2004
an unemployment rate of 5.7%.
The accompanying table shows employment history since the end of 1998, and compares local unemployment with
state and national figures.
     Retail: Retail sales for the fourth
quarter of 2004 increased by 4.5%
compared to 2003 figures. In the
fourth quarter of 2004, retail sales
for Caddo Parish were up 9.6%,
while Bossier Parish retail sales
were down 6.2% compared to
2003 figures. The accompanying
chart shows annual retail sales
figures through year end 2004.




COPYRIGHT AND LIMITATIONS ON USE. The information presented herein is the property of The U. L. Coleman Companies and is protected by copyright and other intellectual property laws. Information
herein may not be displayed, copied, reformatted, or printed for any reason. Additional copies may be distributed by The U. L. Coleman Companies in conjunction with a written request.
DISCLAIMER OF WARRANTIES AND LIABILITY. Due to the number of sources from which information is obtained, there may be inaccuracies in such information. The statements and figures herein, while not
guaranteed, are secured from sources we believe authoritative. Rates usually do not include concessions that would tend to make actual and effective rates lower than quoted market rates.
ADDITIONAL INFORMATION. A full report is available by subscription. Brokerage, property management, consulting, and construction services are also available by contacting U.L.Coleman Companies by mail
(207 Milam St., Ste. C, Shreveport, LA 71101), phone (318-221-0541), fax (318-221-0568), or e-mail (ulcoleman@ulcoleman.com). You may also visit our web site at http://www.ulcoleman.com.

				
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