BATON ROUGE INDUSTRIAL MARKET

Presented by:

Scot Guidry, CCIM

Mike Falgoust & Associates Commercial Real Estate

Source: Louisiana Department of Economic Development and The Advocate

P R I C E O F N AT U R A L G A S

$14.49

$13.20

$1.86

$4.43

Scot Guidry, CCIM, Co-Chairman

Mike Falgoust & Associates Commercial Real Estate

Mathew Laborde, CCIM, Co-Chairman

Beau Box Commercial Real Estate

INDUSTRIAL COMMITTEE ME MB E RS

Todd Pevey, MPA

MIE Properties

Branden Barker, CCIM, CPM

NAI Latter & Blum

Brent Garrett, CCIM, SIOR

Beau Box Commercial Real Estate

Ryan Greene, CCIM

NAI Latter & Blum

Walt Ketchings
NAI/ Latter & Blum

SPECIAL CONTRIBUTOR
Randy Peterson
Chemplant Company www.Chemplant.com

David Lakvold, MAI, SRA

The Lakvold Group

Mike Mooring
The Lakvold Group

 RACE TO THE RIVER

STUDY AREA (BATON ROUGE MSA)

Source: Baton Rouge Area Chamber and LEO, LLC

HISTORICAL VACANCY RATE

Series1
16%

15.03% 14.36% 13.78%

14%

14.13%

12%

11.04% 10.08%
10%

11.60%

9.30%
8%

8.66% 8.10% 6.48%

6%

4%

4.74% 1 2 3 4 5 6 7 8 9 10 11 12

Katrina Effect

Econ. Recession Effect

H I S TO R I C A L VA C A N C Y & N E T A B S O R P T I O N
MEMO VACANCY RATE NET ABSORPTION (SF)

2009 ECON RECESSION 2010 ECON RECESSION 2011 ECON RECESSION 2012 IMPROVING MKT 2013 STABILIZING MKT

14.13% 15.03% 14.36% 11.60% 9.30%

102,359 (62,748) 220,945 867,959 671,127

H I S TO R I C A L VA C A N C Y & N E T A B S O R P T I O N
Series1
4,000,000

Series2

3,500,000

3,000,000

Square Feet

2,500,000

2,000,000

1,500,000

1,000,000

500,000

1
(500,000)

10

11

12

Katrina Effect

Econ. Recession Effect

HISTORICAL INVENTORY TOTAL

Series1
25,000,000

Series2

Series3

INVENTORY BREAKDOWN Vacant Space = 2,371,973 SF

23,000,000

Square Feet

21,000,000

19,000,000

Occupied Space = 23,145,130 SF

17,000,000

15,000,000

Total = 25,517,103 SF

MAP OF VACANT BUILDINGS

Choctaw Vacant MORE than 1 year Vacant LESS than 1 year

Westport

Industriplex

NOTE: The bigger the dot on the map is, the bigger the vacant building is.

Hwy 30

CLOSE-UP
Choctaw Vacant MORE than 1 year Vacant LESS than 1 year

Westport Industriplex

NOTE: The bigger the dot on the map is, the bigger the vacant building is.

SAMPLE INDUSTRIAL LEASE RATES

Product Type1 Flex Space2 Office Warehouse Older Office Warehouse New Bulk Warehouse Older Bulk Warehouse New
2 Multi-tenant,

Size (SF) 5,000 - 15,000 5,000 - 15,000 5,000 - 15,000 20,000+ 20,000+
1 Excludes

Lease Rate Range Lease Type (/SF) $8.00 - $12.00 $3.50 - $4.50 $7.00 - $9.00 $3.00 - $4.50 $5.50 - $7.00 Net Net Net Net Net

laydown yard area tilt wall construction with a minimum office/warehouse ratio of 20/80

SAMPLE INDUSTRIAL LAND PRICES

DESIRABILITY PRIME LAND NON-PRIME LAND East Baton Rouge (/SF) $5.50 - $7.50 $3.00 - $4.00 West Baton Rouge (/SF) $2.00 - $3.00 $0.75 - $2.00 Ascension (/SF) $3.00 - $5.00 $1.00 - $2.00

1Based

on land tracts consisting of 210 Acres

YOUR OTHER WAREHOUSE

New Womans Hospital

YOUR OTHER WAREHOUSE

AMERICAN TIRE DISTRIBUTORS

( AT D )

SETPOINT

(formerly DMC)

Baton Rouge

PERFORMANCE WBR PIPEYARD

PORT OF BATON ROUGE

TIDAL TANK

TIDAL TANK

DELTA DR (ST. GABRIEL)

EMERSON

Emerson

New River Parish Community College Campus

BENGAL TRANSPORTATION

COMMERCE POINTE DR (GEISMAR)

GATEWAY INDUSTRIAL PARK

GATEWAY INDUSTRIAL PARK

GATEWAY INDUSTRIAL PARK

GATEWAY INDUSTRIAL PARK

HIGHWAY 73 (GEISMAR)

HIGHWAY 73 (GEISMAR)

METHANEX

Hwy 30

METHANEX

Mississippi River

IMPALA

INDUSTRIPLEX AVE (GEISMAR)

ST. LANDRY RD (GONZALES)

2013 NOTICEABLE TRENDS

The Vacancy Rate decreased by 230 basis points in 2013. 11.6% Vacancy Rate in 2012 compared to 9.3% in 2013 for buildings containing 5,000 square feet or more. Market stabilizing. Land values on the upward swing. Increased rental rates for smaller office-warehouses (15,000 square feet and less) in Ascension Parish and parts of East Baton Rouge Parish. Increase in new construction from 120,546 SF in 2012 to 456,905 SF in 2013. Increased demand for office-warehousing with stabilized material yards. Regional industrial service centers continue to consolidate facilities under one roof. Nationally the US Manufacturing sector is rebounding which increases a demand for the chemicals made locally. Increasing demand in general within the industrial market. Increased demand for bulk oil pipeline and oil storage capacity. Continued use of US natural resources and less dependence on imports. Natural gas prices continue to be low and abundant. Renewed investment in Tuscaloosa Marine Shale oil play.

On your mark, get set,

GO!