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									                             Southwest Louisiana

                           Commercial Real Estate

                                   Market Report




                                  Report Prepared by


                                 Dr. Daryl V. Burckel
                                         and
                                 Dr. Michael M. Kurth




                                     Published by

            Southwest Louisiana Economic Development Alliance




                                      June 2008


________________________________________                   _____________________________
                       Southwest Louisiana Commercial Real Estate
                                           -1-
                              TABLE OF CONTENTS




Introduction                                                              3


Market Summary                                                            4


Local Economy                                                             5


Office Summary                                                           11


Industrial Summary                                                       14


Retail Summary                                                           18




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                       Southwest Louisiana Commercial Real Estate
                                           -2-
                                         INTRODUCTION


This initial issue of the Southwest Louisiana Commercial Real Estate – Market Report is a
publication of the Southwest Louisiana Economic Development Alliance. Data contained in the
report represents data collected through June 2008. We acknowledge that the data presented in
this report is not an exhaustive list of the properties meeting the criteria for inclusion in each
market segment. However, we believe the list of properties presented provide an adequate
sample to accurately reflect market conditions.

As we conduct further research and produce future issues, additional properties will be added to
the database providing a more complete picture of the Southwest Louisiana Commercial Real
Estate Market.

The goal of this publication is to report high quality, reliable statistics using a consistently applied
approach and to provide insight into commercial and multi-family real estate trends in Southwest
Louisiana on a semi-annual basis.

Real estate professionals throughout the Southwest Louisiana community assisted the Alliance in
gathering data for this report. Appreciation is extended to these individuals. We would especially
like to thank Matt Redd, Andrew Vancherie and Richmond Reinaur for their assistance in this
initial endeavor.

Commercial data was obtained by surveying office, industrial, and retail properties. Multi-family
properties were not included in the initial survey and will be added in the next report.




Disclaimer

The information contained in this report was gathered by the Southwest Louisiana Economic
Development Alliance from sources believed to be reliable. The Alliance, however, makes no
representation concerning the accuracy or completeness of such information and expressly
disclaims and responsibility for any inaccuracy contained herein.




________________________________________                            _____________________________
                            Southwest Louisiana Commercial Real Estate
                                                 -3-
                                     MARKET SUMMARY

This publication reports on the area economy and the commercial and multi-family real estate
markets through June 2008. This is the initial report regarding the real estate market for
Southwest Louisiana. Future reports will provide for an analysis with previous periods in order to
highlight the progress made in each market.


LOCAL ECONOMY
The major segments of the economy of Southwest Louisiana—oil, petrochemicals, gaming,
shipping, agriculture and timber—all appear fundamentally strong. In fact, were it not for the
national economy, one might say we appear poised for a significant economic expansion. But
there are some obstacles, especially the availability of low wage and technical/skilled workers
and the availability of affordable housing. A national recession would likely impact the retail
sector, especially big-ticket items such as automobiles, appliances and furniture that require
financing. It could also stifle new home construction, which could be critical to attracting the labor
needed for industrial expansion.

OFFICE MARKET
The office market survey includes non-owner occupied buildings consisting of at least 5,000 sf or
more. As of June 2008 seventeen (17) properties were included in this survey. The overall
market occupancy rate for the seventeen properties was approximately 68%. Total square
footage available was 785,979 with 535,243 being occupied. The weighted average quoted
rental rate for occupied space in the surveyed market was $1.11 per square foot per month or
$13.27 per year.

INDUSTRIAL MARKET
The industrial market survey consists of buildings 10,000 sf and greater that were listed in the
MLS. Included in the data base are leased space at the Port of Lake Charles and Chennault
Airpark. The weighted average rental rate for the industrial market was $.37 per square foot per
month or $4.39 per year. The average lease rate for small properties was $.74 per month,
medium were $.68 per month and large properties leased at $.23 per month. Overall occupancy
for all properties in the survey was approximately 72%.

RETAIL MARKET
The retail market segment consists of traditional strip shopping centers 10,000 sf or greater in
size. The initial inventory consists of 17 properties with a total of 566,803 rentable gross sf as
identified in the MLS. Overall occupancy rates in the retail survey were approximately 53%
representing 297,670 square feet. The rental rates by market shows that the 70601 and 70605
regions command the highest rates of approximately $1.19 per square foot per month or $14.24
sf per year.



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                           Southwest Louisiana Commercial Real Estate
                                                 -4-
                                                                    LOCAL ECONOMY

EMPLOYMENT

Southwest Louisiana was in the midst of an economic expansion when the twin hurricanes—
Katrina and Rita--struck Louisiana in September 2005. Over the next two years there was turmoil
in the local labor market as workers were desperately needed to repair storm damage, while at
the same time jobs as some businesses shutdown and never reopened. Three years later, the
local labor market has pretty much returned to normal (there remains shortages of low-skilled and
technical workers, but those existed prior to the hurricanes). But now the nation appears headed
for a recession. Southwest Louisiana, however, may not follow the national trend. In the past,
our economy has often performed counter-cyclically with the national economy, largely due to the
oil industry: when oil prices are high, the nation tends to do poorly while the “oil patch” states—
Texas, Louisiana and Oklahoma—do well.

 The graph below shows the rolling average employment in Calcasieu Parish, where each point
represents the average employment for the previous twelve months. This graphing method
factors out seasonal fluctuations and helps to highlight changes in longer-term trends. These


                                                           CALCASIEU PARISH EMPLOYMENT

                                        90,000




                                        85,000
             12-Month Rolling Average




                                        80,000




                                        75,000




                                        70,000




                                        65,000
                                             1991   1993     1995    1997   1999   2001   2003      2005   2007




data indicate that early in 2008 local employment began a modest decline from the record high
achieved at the end of 2007. This is likely due to two developments: the end of the “Rita boom”
as hurricane repairs were completed, and a decrease in consumer spending associated with the
national recession. But it is expected that this decline will be reversed as construction

________________________________________                                                         _____________________________
                                                      Southwest Louisiana Commercial Real Estate
                                                                            -5-
employment increases due to expansion in oil and gas and petrochemical industries and the
addition of 1,500 new jobs when Pinnacle’s new Sugar Cane Bay casino resort is opened.

Construction is a large component of the local economy, and construction employment can be
very volatile. Unemployment within the construction industry generally accounts for around 10
percent of all unemployment, but changes in construction unemployment account for nearly
three-fourths of the change in total unemployment. As the graph below shows, construction
employment in Calcasieu Parish has remained relatively stable over the past eighteen months
with between 10,000 and 11,000 workers employed. During this period, unemployment in
Southwest Louisiana has also remained stable at around four percent of the labor force.




                                                    CONSTRUCTION EMPLOYMENT:
                                                        CALCASIEU PARISH

                                        12

                                        11
                 Thousands of Workers




                                        10

                                         9

                                         8

                                         7

                                         6
                                          2005             2006           2007            2008




RETAIL SALES

Retail sales soared following hurricane Rita as many people had to make repairs and replace
vehicles, furniture, and appliances destroyed in the storm. But the “Rita boom” ended in the fall
of 2007. Taxable sales in 2007 matched those in 2006, due primarily to sharply higher gas and
utility bills as well as higher food cost. Automobile sales are down significantly while other retail
activity continues to be weak. Local retail sales in the near term will depend on consumer
spending and could be affected by the course of the national economy, especially big-ticket items
that consumers typically finance.

________________________________________                                             _____________________________
                                                 Southwest Louisiana Commercial Real Estate
                                                                    -6-
CASINO REVENUES

Casino gaming in Southwest Louisiana experienced a boom following hurricane Rita, partly due
to the opening of Pinnacle Entertainment’s L’auberge du Lac casino resort—which was a huge
success—and partly due to the destruction of casinos in New Orleans and along the Mississippi
gulf coast by hurricane Katrina. When L’aubrge du Lac opened in May 2005 it added
approximately $250 million to the Southwest Louisiana gaming market. This more than replaced
the loss of Harrah’s riverboat complex to hurricane Rita, and since that time L’auberge has
continued to improve its performance. It now ranks as the leading casino in Louisiana, while
Boyd Gaming’s casino at Delta Downs in Vinton is the leading “racino” in the state. The Isle of
Capri’s revenue is down only slightly despite the strong performances of L’auberge and Delta
Downs. It is expected that the addition of Sugar Cane Bay in 2010 will add another $150 million
to the local gaming market, pushing combined revenues close to $1.3 billion.




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                          Southwest Louisiana Commercial Real Estate
                                             -7-
                             Southwest Louisiana Gaming Market

         $1,400



         $1,200



         $1,000



          $800



          $600



          $400



          $200



            $0




                                                  M o nt h/ Y ear




How the gaming industry in Southwest Louisiana may be affected by a national recession
remains to be seen. The gaming industry in general can be quite vulnerable to economic
recessions as gambling relies heavily on disposable income, which may dry-up when times are
tough. But the Southwest Louisiana gaming market may have two things going for it: first, it
draws it patronage from the “oil patch” region and, second, casino patrons in Texas may see
Louisiana casinos as a cheap alternative to Las Vegas.


THE CALCASIEU SHIP CHANNEL AND PORT OF LAKE CHARLES

Economic activity along the Calcasieu Ship Channel and at the Port of Lake Charles is expected
to increase significantly over the next five years. There are currently five multi-billion dollar LNG
facilities under construction along the channel in Calcasieu and Cameron parishes, which will
make Southwest Louisiana the center for importing and distributing liquefied natural gas in the
U.S. The Port of Lake Charles is one of the busiest ports in the US, ranking 9th in import tonnage
and 22nd in export tonnage.




________________________________________                            _____________________________
                           Southwest Louisiana Commercial Real Estate
                                                -8-
                     U.S. Waterborne Foreign Trade by U.S. Custom Ports

                                 Rank in 2006    2003         2004         2005         2006

                   Imports
                                     9th        28,356,630   24,617,816   25,159,124   27,113,280
                 (metric tons)

                   Exports
                                     22nd        3,578,561    4,160,263    4,795,462    4,494,964
                 (metric tons)

                 Total Value
                                     26th         $5,200       $6,042       $8,390      $10,519
                  (Millions)



While the Port of Lake Charles does not directly employ a large number of workers, activity at the
port reflects the strength of our export-intensive industries, including agriculture, timber and
petrochemicals. Shipments through facilities owned-by or leased-from the Lake Charles Harbor
and Terminal District have grown steadily over the last three years—from about 7.8 million tons in
2005 to over 11.1 million tons in 2007 (see chart that follows). The reported tonnage figures
include two major categories of cargo—breakbulk and bulk. Tonnage figures in the chart for bulk
cargo primarily include coke, limestone, barite, coal, and liquefied natural gas. Bulk cargos are
mostly handled at facilities on the west side of the ship channel and along the industrial canal.




________________________________________                                  _____________________________
                             Southwest Louisiana Commercial Real Estate
                                                -9-
RESIDENTIAL CONSTRUCTION

New home construction fell sharply following hurricane Rita. Partly this was due to a sharp
increase in the cost of building materials and construction labor as business and commercial
enterprises bid resources away from private homebuilders, and partly it was to due to the near-
collapse of national residential credit markets. The table below shows the decline in new
privately owned residential building permits following hurricane Rita, with a partial recovery in
2007.


                                                    Annual Value of New Residential Building Permits:
                                                                    Calcasieu Parish

                                            140


                                            120
                      Millions of Dollars




                                            100


                                            80


                                            60


                                            40


                                            20


                                             0
                                                  2005            2006            2007           2008




                 Source: US Census Bureau



There is considerable concern that the lack of affordable residential housing, especially
apartment complexes and multi-unit dwellings, could be an impediment to attracting the workers
needed for the industrial expansion projects currently planned for Southwest Louisiana.



ECONOMIC SUMMARY

The major segments of the economy of Southwest Louisiana—oil, petrochemicals, gaming,
shipping, agriculture and timber—all appear fundamentally strong. In fact, were it not for the
national economy, one might say we appear poised for a significant economic expansion. But
there are some obstacles, especially the availability of low wage and technical/skilled workers
and the availability of affordable housing. A national recession would likely impact the retail
sector, especially big-ticket items such as automobiles, appliances and furniture that require
financing. It could also stifle new home construction, which could be critical to attracting the labor
needed for industrial expansion.

________________________________________                                                    _____________________________
                                                   Southwest Louisiana Commercial Real Estate
                                                                         - 10 -
            OFFICE SUMMARY
                                                                   Office Market Survey Total
                                                                                June 2008
Overview
The office market survey includes non-owner                Area                 Rentable Occupied Occupancy
occupied buildings consisting of at least
                                                                   Number
                                                          Codes                   SF        SF        %
5,000 sf or more.         As of June 2008
seventeen (17) properties were included in                70601            12     314,577    177,867          56.54%
this survey. A list of properties begins on at
the end of this section.                                  70605             2      80,000     77,200          96.50%
                                                          70607             1      38,000     38,000          100.00%
For reporting purposes, the office property
data was organized into geographic markets                70629             1     348,402    242,176          69.51%
by zip code. An additional sub-classification
would have been to organize the properties
                                                          70663             1       5,000          0           0.00%
by class – Class A, Class B, and Class C for
the type of properties contained in each
                                                          Totals                  785,979    535,243           68.10%
geographic market.             This additional
classification by Class was not utilized but
will be included in future studies.                                     Total Office Consum ption
                                                                              By Square Feet

The overall market occupancy rate for the
sixteen properties was approximately 68%.
Total square footage available was 785,979
with 535,243 being occupied. The weighted                     250,736
average quoted rental rate for occupied                         32%
space in the surveyed market was $1.11 per
square foot per month or $13.27 per year.

The 70601 and 70629 zip codes or                                                                    535,243
                                                                                                     68%
Downtown Lake Charles area maintains the
largest share of the markets square footage
at 88%. The Capital One building alone
contains 47% of this square footage. The                                Occupied SF   Available SF
majority of the remaining square footage is
generated by two office buildings in the
70605 zip code with 11%.




________________________________________                            _____________________________
                           Southwest Louisiana Commercial Real Estate
                                                 - 11 -
              Office Market Square Footage                                              Total Office Occupancy by Zip Code
                      By Zipe Code
                                                                                         400,000

                                                                                         300,000
                        70663
                         1%                                                  Square Feet 200,000
                                         70601
      70629
                                          40%                                            100,000
       44%
                                                                                                  0
                                                                                                      70601   70605    70607     70629   70633

                     70607      70605                                               Rentable SF       314,577 80,000 38,000 348,402 5,000
                      5%         10%                                                Occupied SF 177,867 77,200 38,000 242,176              0

                                                                                                                      ZipCodes


                                                                                             Rentable SF         Occupied SF


Occupancy
The Total Office Occupancy by Zip Code
chart illustrates the occupied space of                                                      Average Lease Rate
properties in each geographical region. Zip
Code 70601 had occupancy of 54.28% while                                                  $1.50
the other Downtown zip code 70629 had an                    Dollars per SF
occupancy rate of 69.51%.         The two                                                 $1.00
properties listed in 70605 had the greatest
occupancy of 96.5% and the one property                                                   $0.50
listed in 70663 was unoccupied as of June
2008.                                                                                     $0.00
                                                                                                       70601 70605 70607 70629 70633

                                                                                Average Lease $1.02 $1.17 $1.42 $1.10 $1.00
Quoted Rental Rates                                                             Rate

The quoted rates for the office market range                                                                            ZipCode
from $12 to $14. The market reported a
                                                                                                                Average Lease Rate
weighted average rental rate of $1.08 per sf
per month on a gross rental basis. The
highest average quoted rental rate for a
geographical region is found in the 70605 zip
code at $1.17 sf per month or $14.04 per
year.




________________________________________                                               _____________________________
                                 Southwest Louisiana Commercial Real Estate
                                                   - 12 -
                                               SW Louisiana - Office Space
                                                                   Phone                                Build.     # of
      Address              City       Zip           Contacts                      Listing Company                          SF Avail.     Range
                                                                    (337)                                GSF      Floors
114 Clarence St.      Lake Charles   70601   Richman Reinauer     310-8020 Reinauer Real Estate           3,700        1       3,700 $     1.15
125 W Broad           Lake Charles   70601   Russel Tauzin        437-4000 Realty Source                 12,000        2      12,000 $     1.15
2827 Fourth Avenue    Lake Charles   70601   Eddie Conner         310-7333 Redd Properties               13,200        2      13,200 $     0.67
3301 Ryan             Lake Charles   70601   Eddie Conner         310-7333 Redd Properties               10,325        1       3,000 $     1.00
425 Kingsley St       Lake Charles   70601   Richman Reinauer     310-8020 Reinauer Real Estate          10,000        1      10,000 $     0.75
710 W. Prien Lake     Lake Charles   70601   Keith Duplechain     437-4000 Realty Source                 23,062        2       1,862 $     1.15
750 Bayou Pines E     Lake Charles   70601   Keith Duplechain     437-4000 Realty Source                 10,287        1           0 $     1.00
751E(Bayou Pines)     Lake Charles   70601   Melba Higginbotham   433-9398 Lake Charles Property Mgmt     4,460        2       4,460 $     1.00
803W(Bayou Pines)     Lake Charles   70601   Melba Higginbotham   433-9398 Lake Charles Property Mgmt     6,744        1       6,744 $     1.00
901 Lakeshore Dr      Lake Charles   70601   Matt Redd            477-4585 Redd Properties              115,000      11       75,000 $     1.17
A.                    Lake Charles   70601   Melba Higginbotham   433-9398 Lake Charles Property Mgmt     1,697        1       1,697 $     1.00
B.                    Lake Charles   70601   Melba Higginbotham   433-9398 Lake Charles Property Mgmt     1,020        1       1,020 $     1.00
C.                    Lake Charles   70601   Melba Higginbotham   433-9398 Lake Charles Property Mgmt     1,098        1       1,098 $     1.00
D.                    Lake Charles   70601   Melba Higginbotham   433-9398 Lake Charles Property Mgmt       480        1         480 $     1.00
E.                    Lake Charles   70601   Melba Higginbotham   433-9398 Lake Charles Property Mgmt     1,329        1       1,329 $     1.00
F.                    Lake Charles   70601   Melba Higginbotham   433-9398 Lake Charles Property Mgmt     1,120        1       1,120 $     1.00
127 W Broad           Lake Charles   70601   Allen Singletary     433-0511 Investors Properties          83,500        9           0 $     1.25
1919 Kirkman Street   Lake Charles   70601   Andrew Vachiere      477-7474 Redd Properties               15,555        1           0 $      -
300 E Mcneese St.     Lake Charles   70605   Keith Duplechain     473-4000 Realty Source                 52,000        2       1,700 $     1.10
3501& 3505 5th Ave    Lake Charles   70605   Keith Duplechain     437-4000 Realty Source                 28,000        1       1,100 $     1.10
4250 Fifth Avenue     Lake Charles   70607   Andrew Vachiere      477-7474 Redd Properties               38,000        1           0 $      -
One Lake Shore Dr.    Lake Charles   70629   Mark Politz          437-1142 Capital One                  348,402      22      106,226 $     1.17
4412 Maplewood        Sulphur        70663   Andrew Vachiere      477-7474 Redd Properties                5,000        2       5,000 $     1.00




                   ________________________________________                              _____________________________
                                             Southwest Louisiana Commercial Real Estate
                                                                  - 13 -
         INDUSTRIAL SUMMARY                                           Industrial Market Survey Total
                                                                                 June 2008
The industrial market survey consists of
buildings 10,000 sf and greater that were                  Zip
                                                                   Number Rentable SF Occupied SF Occupancy %
listed in the MLS. Included in the data base              Codes
are leased space at the Port of Lake Charles              70601       8        547,165       230,800        42.18%
and Chennault Airpark. This category can be               70605       1         12,000        12,000       100.00%
quite extensive and a significant amount of               70607       3         83,428        41,984        50.32%
investigation will be necessary in order to               70611       1         18,000        18,000       100.00%
identify all leased industrial property for               70615      14      1,491,484     1,208,644        81.04%
future reports.                                           70663       1         42,480        42,480       100.00%
                                                          70669       1         86,400        86,400       100.00%
For reporting purposes, the properties are
                                                          Totals     29      2,280,957     1,640,308       71.91%
classified by three size categories as well as
by geographic location.        Property size
categories are as follows:

Small        10,000 to < 25,000 sf
                                                                         Industrial Market Survey
Medium       25,000 to < 75,000 sf
                                                                    Inventory by Geographic Sub-market
Large        75,000 sf and larger

The occupancy rate reported for all
properties as of June 2008 was a almost
                                                                              70669                70601
72%.                                                                 70663
                                                                               4%                   24%
                                                                      2%
                                                                                                         70605
Inventory By Geographical Sub-Market                                                                      1%

The market percentages by geographic sub-                                                                70607
market are displayed in the Inventory by                                                                  4%
Sub-market chart. The chart presents the                           70615                                 70611
percentage of rentable square footage in the                        65%                                   1%
market. The 70615 market, which includes
Chennault Airpark, contains the largest
portion of the market at 65%. The 70601
sub-market holds 24% of the inventory with
70607 and 70669 holding 4% each. The
remaining market is spread between 70663
and 70605 each holding 2% and 70611
holding 1% of the market.




________________________________________                              _____________________________
                           Southwest Louisiana Commercial Real Estate
                                                 - 14 -
Inventory by Size                                                                                      Avg Lease Rate
The large category properties account for
34% of the number of properties in this                                                     $1.50

survey and account for almost 80% of the




                                                                   Dollar per SF
                                                                                            $1.00
rentable sf in the market. Details of each
category are as follows:                                                                    $0.50


                                                                                            $0.00
                                                                                                    70601 70605 70607 70611 70615 70663 70669
                                            Inventory                              Avg Lease Rate   $0.87 $1.30 $1.08 $1.11 $0.38 $1.10 $0.22
         Category      RSF         #
                                              RSF                                                                  Zip Codes


     Small            208,777          13      9.15%
     Medium           252,480           6     11.07%
     Large           1,819,700         10     79.78%
                                                                 Occupancy Rates
     Total           2,280,957         29   100.00%              Overall occupancy for all properties in the
                                                                 survey was approximately 72%. Broken
                                                                 down by size, occupancy was greatest in
Rental Rates                                                     medium size properties at 92%, followed by
The weighted average rental rate for the                         large properties at 73% and small properties
industrial market was $.37 per square foot                       at 36%.          Occupancy evaluated by
per month or $4.39 per year. The average                         geographic region shows that the 70605,
lease rate for small properties was $.74 per                     70611, 70663 and 70669 properties are
month, medium were $.68 per month and                            100% occupied but only account for 11% of
large properties leased at $.23 per month.                       the total rentable square footage. However,
The larger properties were leased at lower                       the 70615 market is 81% occupied and
rates due to rates at the industrial park at                     accounts for 65% of the rentable space while
Chennault. The following chart breaks down                       the only other notable region is 70601 with a
rent rates by geographic region.                                 42% occupancy representing 24% of the
                                                                 rentable space.


                   SF            WA Rental     %
  Category
                Occupied          Rates    Occupancy

 Small                74,428       74%            36%
 Medium              232,480       68%            92%
 Large              1,333,400      23%            73%
 Totals             1,640,308      37%            74%




________________________________________                                                     _____________________________
                                   Southwest Louisiana Commercial Real Estate
                                                        - 15 -
                               Total Occupancy by ZipCode

                       2,000,000


           Square Feet 1,000,000


                                 0     70601   70605    70607    70611   70615   70663    70669

                        Rentable SF    579,165 39,000   83,428   18,000 1,527,42 42,480   86,400
                        Occupied SF 230,800 12,000      41,984   18,000 1,213,64 42,480   86,400

                                                            Zip Codes

                                      Rentable SF       Occupied SF




________________________________________                                  _____________________________
                       Southwest Louisiana Commercial Real Estate
                                                 - 16 -
                                     SW Louisiana - Surveyed Industrial Space
     Property Name                         Address                  City      Zip Code Phone (337)         Listing Company     Build. GSF
425 Kingsley             425 Kingsley                          Lake Charles    70601    310-8020     Reinauer Real Estate         10,000
3301 Ryan                3301 Ryan                             Lake Charles    70601    478-7411     Redd Properties              10,325
125 W Broad              125 W Broad                           Lake Charles    70601    437-4000     Realty Source                12,000
2204 N Old HWY 171       2204 N Old Hwy 171                    Lake Charles    70601    794-3288     Flavin Realty                19,540
209 W Clarence3.51       209 W Clarence                        Lake Charles    70601    842-9237     Flavin Realty                20,000
825 Ryan                 825 Ryan                              Lake Charles    70601    310-7333     Redd Properties              25,000
202 N Ryan               202 N Ryan                            Lake Charles    70601    310-8027     Reinauer Real Estate        114,300
City Dock Warehouses     150 Maine Street                      Lake Charles    70601    493-3504     Port of Lake Charles        336,000
3629 Kirkman             3629 Kirkman                          Lake Charles    70605    540-8442     Prudential Elite Realty      12,000
2925 Industrial          2925 Industrial                       Lake Charles    70607    478-8530     Flavin Realty                23,444
Toyota Auto Dealership   3601 Gerstner Memorial                Lake Charles    70607    474-5270     Coldwell Banker Legacy       24,984
2750 Power Center        2750 Power Center                     Lake Charles    70607    478-8530     Flavin Realty                35,000
271 Highway 171          271 Highway 171                       Moss Bluff      70611    310-7333     Redd Properties               18,000
777 HWY 397              777 HWY 397                           Lake Charles    70615    310-7333     Redd Properties              10,800
2555 Industiral Ave.     2555 Industrial Ave.                  Lake Charles    70615    478-8530     Flavin Realty                14,240
2954 Industrial Ave.     2954 Industrial Ave.                  Lake Charles    70615    478-8530     Flavin Realty                23,444
Hangar A & Buildings     4400 Sen J Bennett Johnston Ave       Lake Charles    70615    491-9961     Chennault Airport           397,000
Hangar B                 4400 Sen J Bennett Johnston Ave                                                                         240,000
Hangar C                 1945 Merganser Street                 Lake Charles    70615    491-9961     Chennault Airport           161,000
Hangar D                 1945 Merganser Street                                                                                   170,000
Hangar E                 1945 Merganser Street                                                                                     60,000
Hangar F                 1945 Merganser Street                                                                                     60,000
Hangar G                 1945 Merganser Street                                                                                     75,000
Building 3005            1945 Merganser Street                                                                                     10,000
Building 3101            1945 Merganser Street                                                                                     30,000
Building 3009            1945 Merganser Street                                                                                   100,000
Building 1 & Buildings   1921 Merganser Street                 Lake Charles    70615    491-9961     Chennault Airport           140,000
1139 Patton              1139 Patton                           Sulphur         70663    310-7333     Redd Properties               42,480
Westlake Warehouses      114 Kile Street                       Lake Charles    70669    493-3504     Port of Lake Charles         86,400




               ________________________________________                                _____________________________
                                                Southwest Louisiana Commercial Real Estate
                                                                  - 17 -
             RETAIL SUMMARY                                                  Retail Market Survey Total
                                                                                     June 2008
Overview
                                                                                       Rentable    Occupied Occupancy
The retail market segment consists of                       Zip Code      Number
                                                                                         SF           SF        %
traditional strip shopping centers 10,000 sf or
greater in size. The initial inventory consists              70601              11       221,450       49,257       22.24%
of 17 properties with a total of 566,803                     70605               1        76,530       64,330       84.06%
rentable gross sf as identified in the MLS. A                70611               3        82,540       41,800       50.64%
list of properties in included at the end of the             70647               1       131,046       87,046       66.42%
retail section.                                              70663               1        55,237       55,237      100.00%
                                                             Total                       566,803      297,670       52.52%
The retail properties have been divided into
geographical sub-markets based upon zip
code. Retail properties, as with the office                                  Total Re tail Cons um ption
properties, will be further sub-divided by
Class in future reports.       The market
occupancy rate for June 2008 was 52.52%.

                                                                                                             269,133,
                                                                                                               47%
Occupancy                                                        297,670,
                                                                   53%
Overall occupancy rates for the 17 properties
in the retail survey were approximately 53%
representing 297,670 square feet. The one
property in the 70663 market was 100%
occupied which represents less then 10% of
the rentable space. The lowest occupancy                                      Available SF    Occupied SF

rate was in the 70601 survey region with only
22% but accounted for almost 39% of the
rentable space.                                                                  Average Lease Rate


                                                                               $1.40
                                                                               $1.20
Rental Rates
                                                             Dollar per        $1.00
The rental rates by market shows that the                                      $0.80
                                                                 SF
70601 and 70605 regions command the                                            $0.60
highest rates of approximately $1.19 per                                       $0.40
square foot per month or $14.24 sf per year.                                   $0.20
                                                                               $0.00
                                                                                       70601 70605 70611 70647 70663

                                                                          Average      $1.19 $1.18 $0.93 $0.50 $1.00
                                                                          Lease Rate
                                                                                                   ZipCode

                                                                                             Average Lease Rate




________________________________________                                     _____________________________
                            Southwest Louisiana Commercial Real Estate
                                                   - 18 -
                          Total Retail Occupancy by Zip Code


                            400,000

                Square Feet 200,000

                                  0
                                      70601 70605 70611 70647 70663
                        Rentable SF 221,450 76,530 82,540 131,046 55,237
                        Occupied SF 49,257 64,330 41,800 87,046 55,237
                                                    Zip Codes

                                 Rentable SF   Occupied SF




________________________________________                        _____________________________
                       Southwest Louisiana Commercial Real Estate
                                           - 19 -
                                              SW Louisiana - Available Retail Space
    Property Name               Address                City    Zip Code            Contacts   Phone (337)          Listing Company        Build. GSF

1736 Hwy 14               1736 Hwy 14           Lake Charles     70601 Aimee Oliver           515-6990      Lakeside Properties              19,106

United Furniture          932 Enterprise        Lake Charles     70601 David Rose             884-2300      Southwest Business Brokers       38,700

1417 E. Prien Lake        1417 E. Prien Lake    Lake Charles     70601 Eddie Conner           310-7333      Redd Properties                  17,300

3200 E. Prien Lake        3200 E. Prien Lake    Lake Charles     70601 Eddie Conner           310-7333      Redd Properties                  10,252

1410 E. Prien Lake        1410 E. Prien Lake    Lake Charles     70601 Eddie Conner           310-7333      Redd Properties                  15,145

2137 Oak Park             2137 Oak Park         Lake Charles     70601 Jay Wood               433-0200      Reeves Development               54,028

Conner Broad & Ryan       728 Ryan              Lake Charles     70601 Melba Higginbotham     433-9398      Lake Charles Property Mgmt.      14,000

Planet Pets               2519 Ryan             Lake Charles     70601 Richman Reinauer       310-8000      Reinauer Real Estate             23,201

1710 Hwy 14               1710 Hwy 14           Lake Charles     70601 Ron Granger            802-0802      Redd Properties                  15,218

2330 E. Broad St.         2330 E. Broad St.     Lake Charles     70601 Suzanne Sawatzki       478-2668      RE/ Max Realty Pros              14,500

4080 Nelson               4080 Nelson           Lake Charles     70605 Thomas Eastman         794-5446      Flavin Realty                    11,000

Country Club Plaza        Mcneese St.           Lake Charles     70605 Allen Singletary       433-0511      Investor Properties              65,530

Tractor Supply Building   170 Hwy 171           Moss Bluff       70611 Bruce Katz             478-7100      Katz Properties                  45,000

2204 N. Old Hwy 171       2204 N. Old Hwy 171   Lake Charles     70611 Dan Shamsie            794-3288      Flavin Realty                    19,540

271 N. Highway 171        271 N. Hwy 171        Moss Bluff       70611 Ronald Richard         855-7752      Coldwell Banker Legacy           18,000

VF Factory Outlet         800 Factory Outlet    Iowa             70647 John Oshaunesse        582-3568      Store Owner                     131,046

Maplewood Plaza           Maplewood Dr.         Sulphur          70663 Allen Singletary       433-0511      Investor Properties              55,237




                   ________________________________________                                   _____________________________
                                                 Southwest Louisiana Commercial Real Estate
                                                                          - 20 -

								
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