The 3 Baton Rouge Industrial Real Estate Markets to Watch

  • August 25, 2017
  • Industrial
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Written by Advisors Troy Burton and Donato Mucciacciaro

National Real Estate Investor (NREI) recently revealed that industrial real estate is the asset class most preferred by commercial real estate investors and lenders as it provides the most opportunities and most reliable returns.

Below we take a look at the three Baton Rouge markets that any user or owner of industrial real estate should have on their radar.

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Industriplex/Cloverland Market

Location Overview

industrial real estateThe Industriplex/Cloverland area is located in South Baton Rouge between both Interstates and is ripe with opportunity. Located just north of Interstate 10 at the Siegen Lane exit and ±2.5 miles south of Interstate 12 at Sherwood Forest Blvd, this area provides excellent accessibility to and from both major highways. Convenient to the growing parishes of Ascension and Livingston, this industrial real estate area features newer properties and is currently in high-demand.

Average Building Size

The typical building sizes you will find in this industrial area fall between 3,000 and 6,000 square feet, ranging all the way up to 280,000 square feet for some of the larger distribution centers. It is common for these buildings to have small laydown yards.

Typical Price Range

As of Summer 2017, the average triple-net (NNN) leasing rate in this area runs from $7.00 to $10.00 per square foot annually. This of course is dependent on the size, age, and overall condition of the industrial real estate. On the sales side, average prices range from $70.00 to $100.00 per square foot.

Ideal Tenants/Owners

This industrial real estate area is ideal for service providers, contractors, and distributors who require easy interstate accessibility and more up-to-date building finishes, but who aren’t necessarily on a tight budget.

Mammoth/Choctaw Market

Location Overview

industrial real estateThe Mammoth/Choctaw area is one of the more established industrial real estate areas in Baton Rouge. Located just ±3 miles north of Interstate 12 and ±4 miles west of Exxon, many of the businesses established in this area have been around for decades. Some consider this industrial area past its retail demographic heyday, as newer developments have largely focused on interstate corridors, but don’t count it out just yet. For upstarts and investors looking for high cap rates, this area absolutely provides substantial opportunities.

Average Building Size

Building sizes in this industrial real estate area typically average around 2,000 square feet and up. Most properties feature a larger office-to-warehouse ratio that is not found in more modern buildings.

Typical Price Range

It is important to note that large portions of this area were greatly impacted by the devastating floods of 2016. As such, investors can find gutted buildings on the market that are available for purchase in the $15.00 to $20.00 per square foot range. For buildings that are in move-in condition, we are seeing prices that range from approximately $20.00 to $35.00 per square foot. For tenants, the average triple-net (NNN) leasing rate in this area runs from about $3.00 to $4.00 per square foot annually.

Ideal Tenants/Owners

The Mammoth/Choctaw area is best suited for light industrial users who are more interested in affordability and don’t mind being in second or third generation buildings.

Ascension Parish Market

Location Overview

industrial real estateAscension Parish is a suburb of Baton Rouge located at the southeast border of the parish. Interstate 10 and the Mississippi River run directly through the county/parish on their way to New Orleans, which has been a major catalyst for area industrial development. This development has led to a meteoric population growth in the parish over the last few decades. According to the U.S. Census data, between 2000 and 2013, the parish population grew by 49% (76,627 to 114,393) and became the parish with the highest median household income in the state.

Average Building Size

Typical industrial real estate assets in the area range from 4,000 to 20,000 square feet. They are crane loaded with about 10% office, one-acre fenced, and stabilized lay down yards.

Typical Price Range

Several shovel-ready vacant land sites are currently listed for sale in the $3.00 to $4.00 per square foot range. Build-to-suits are also popular in the industrial area with turnkey, move-in ready facilities leasing triple-net (NNN) from $10.00 to $12.00 per square foot annually.

Ideal Tenants/Owners

This industrial area is currently home to more than 20 chemical manufacturing facilities, which are the parish’s most significant economical contributors. The development and operation of these plants has created significant opportunities for all sorts of support businesses along the Highway 30 corridor that intersects with Interstate 10 in Gonzales.

Searching for Industrial Real Estate in Baton Rouge or Surrounding Areas?

If you are seeking to buy or lease industrial real estate in Industriplex/Cloverland, Mammoth/Choctaw, Ascension Parish, or any Baton Rouge market, then let the experts at SVN | Graham, Langlois & Legendre find your ideal space. With deep knowledge of the area’s industrial markets, and a pulse on fluctuating purchase and lease rates, our team is ready to assist in meeting your business needs and surpassing your investment goals. Contact us today at (225) 367-1515.

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