Elifin Realty 640 Main St, Suite A Baton Rouge, LA 70801 2019 YEAR END MARKET SNAPSHOT 2020 | JANUARY ELIFIN REALTY 2020 | JANUARY PG "HOW'S THE MARKET?" This is a question often asked to real estate agents The answer given is typically an assessment of the particular agent’s active deal pipeline as opposed to the actual state of the market being discussed At Elifin Realty, we knew the only way to answer that question was to put our resources at work to capture the data on every commercial sale in East Baton Rouge Parish from 2015 to today So that is exactly what we did It is our pleasure to present to you a snapshot of our research and a datadriven answer to the question, “how’s the market?” Our hope is that you find this as informative and helpful as we did. This is the first of our research reports We plan to expand into more in depth analysis and neighboring parishes in the near future - MATHEW LABORDE, PRESIDENT & CEO, ELIFIN REALTY 2018 | MARCH MEMPHIS SOLUTIONS SUBMARKETS We divided East Baton Rouge Parish into six submarkets to classify sales in their comparative region within the parish DOWNTOWN MIDCITY The Downtown MidCity submarket is bordered by Florida Boulevard to the north, I-10 to the south, the Mississippi River on the west, and Airline Highway to the east and includes downtown Baton Rouge and the MidCity area along Government Street LSU CORPORATE COLLEGE The LSU Corporate College submarket encompasses the southwestern corner of the parish along the Mississippi River to the I-10 / I-12 split and includes the LSU Campus, Corporate Boulevard, and College Drive areas SOUTH The South submarket consists of the southern portion of the parish beginning at the I-10 / I-12 split and includes the Essen Lane, Bluebonnet Boulevard, Siegen Lane, and Highland Road areas EAST The East submarket follows along I-12 and encompasses the southeastern portion of parish generally bounded by Florida Boulevard to the north and Old Jefferson Highway to the south, including the South Sherwood Forest, Old Hammond, Millerville Road, and O’Neal Lane areas NORTH The North submarket is generally bordered by the Comite River to the north, Florida Boulevard to the south, the Mississippi River on the west, and N Flannery Road to the east and includes the I-110 corridor and area north of the Airline Highway / Florida Boulevard intersection BAKER ZACHARY CENTRAL The Baker Zachary Central submarket consists of the northern portion of the parish particularly the Baker, Zachary, and Central municipal districts 2020 | JANUARY PG Sales data for all property types in East Baton Rouge Parish ALL BUILDINGS NUMBER OF SALE TRANSACTIONS THE 2018 BOOM Overall sales reached a five year high in 2018 with the South and East submarkets seeing the sharpest increase in sales that year In 2019 sales trended back to typical levels The 'Tax Cuts and Jobs Act of 2017' that took effect in 2018 led to increased business investment and expansion opportunities for investors, likely leading to the increased number of sale transactions in 2018 GOVERNMENT STREET GROWTH The Downtown MidCity submarket sales have increased 21% since the announcement of the Government Street road diet in 2014 With the road construction scheduled to be completed in 2020, look for continued infill developments as the revitalization of Downtown Midcity progresses THE BAKER ZACHARY CENTRAL DIP The Baker Zachary Central submarket sales are down 50% from 2015 This could be due to the Great Flood of 2016 with the drop off in sales being indicative of buyers’ reluctance to invest in the area As memory of the flood fades in the minds of investors, look for this submarket to rally NUMBER OF SALE TRANSACTIONS 2020 | JANUARY PG MULTIFAMILY Sales data for multifamily properties in East Baton Rouge Parish NUMBER OF SALE TRANSACTIONS KEY INSIGHTS The LSU College Corporate submarket sales increased 313% in 2019 in the wake of local news focusing on the oversupply in student housing Are owners rushing to sell or are buyers rushing to buy? Both Owners that have benefited from historically high occupancy levels are seeing an increase in vacancy, signaling to some that now is the time to cash out Buyers, on the other hand, are incredibly hungry for multifamily product regardless of submarket The East submarket saw an 86% increase in its price per unit in 2019 The South, LSU College Corporate, and Baker Zachary Central submarkets saw their price per unit drop The Downtown MidCity and North submarkets had their price per units maintain relatively the same NUMBER OF MULTIFAMILY SALE TRANSACTIONS AVERAGE PRICE PER UNIT 2020 | JANUARY PG OFFICE Sales data for office properties in East Baton Rouge Parish NUMBER OF SALE TRANSACTIONS KEY INSIGHTS Office sales are down 32% in 2019 with each submarket seeing a drop in office sale transactions The average price per sf for office sales have remained stable in most submarkets with the exception of the The Downtown MidCity and Baker Zachary Central submarkets which have the greatest variances in average price/sf over the five year period NUMBER OF OFFICE SALE TRANSACTIONS AVERAGE PRICE PER SQUARE FOOT 2020 | JANUARY PG RETAIL Sales data for retail properties in East Baton Rouge Parish NUMBER OF SALE TRANSACTIONS KEY INSIGHTS The Downtown MidCity and North submarkets are at five year highs in sale volume All other submarkets are down from 2018 Baker Zachary Central sales are down 79% over a five year period from 24 transactions in 2015 to transactions in 2019 NUMBER OF RETAIL SALE TRANSACTIONS 2020 | JANUARY PG INDUSTRIAL Sales data for industrial properties in East Baton Rouge Parish NUMBER OF SALE TRANSACTIONS KEY INSIGHTS The North submarket consists of older properties along S Choctaw Drive that command an average sale price of $36/sf The South submarket consists of newer properties in the Industriplex/Cloverland area that command an average sale price of $86/sf While the North submarket sales are remaining steady, South submarket sales volume is down significantly from the 2018 spike, but the numbers are back in line with historic trends NUMBER OF INDUSTRIAL SALE TRANSACTIONS AVERAGE PRICE PER SQUARE FOOT 2020 | JANUARY PG THE ELIFIN TEAM The commercial real estate agents at Elifin Realty are specialized in their field They spend 100% of their time making deals, researching trends, and talking with property owners within their specialty When you work with Elifin, you work directly with the market expert MATHEW LABORDE, CCIM PRESIDENT & CEO mlaborde@elifinrealty.com Direct: 225.659.8651 Office: 800.895.9329 Mobile: 337.326.1368 GEORGE BONVILLAIN, J.D OFFICE SALES & LEASING EXPERT gbonvillain@elifinrealty.com Direct: 225.659.8654 Office: 800.895.9329 Mobile: 337.302.0091 MARK SEGALLA MULTIFAMILY SALES EXPERT msegalla@elifinrealty.com Direct: 225.659.8656 Office: 800.895.9329 Mobile: 225.505.4349 WILL CHADWICK RETAIL SALES & LEASING EXPERT wchadwick@elifinrealty.com Direct: 225.659.8657 Office: 800.895.9329 ELIFIN REALTY 640 MAIN STREET SUITE A BATON ROUGE, LA 70801 800-895-9329 sales@elifinrealty.com NOTES: Source: Elifin Realty internal research Sale records included the following specifications: Building sales greater than or equal to $100,000 Multifamily sales greater than or equal to units Sale must be an arm’s length transactions (between unrelated parties) 2020 | JANUARY PG