2001 CID Trends April 24, 2001 Office Sector Presentation. Lacy Howe. Principal, Peek /Howe Real Estate, Inc. Over 12 years in the Commercial real estate field Specializes in acquisition, disposition and leasing. 2001 CID OFFICE TRENDS COMMITTEE.
Lacy Howe, Peek/Howe Real Estate, Inc. – Chairman
Dianne Bankston, Larry E. Bankston Appraisals
Dianne Barlow, Dixon Realty
Richard Hymel, Select Properties
Donnie Jarreau, Donnie Jarreau Real Estate
Steve Legergne, Sealy & Falgoust Real Estate
Carlos Slawson, LSU
Jonann Stutzman, JTS Interests
Debbie Usrey, Latter & Blum
Brad Way, Peek/Howe Real Estate, Inc.
1. According to the LSU’s Survey results, Sherwood Forest Occupancy has decreased 3 – 4% since Spring of 2000. It is probably worse than that, especially if you have a ‘see-through-building”.
A. Why is this happening?
B. What affect on rates will this have?
C. How low do you see rents going? $12.00
2. Will Downtown office continue to attract office tenants or is it tapped out?
If tapped out, what will it take to make it more attractive to office dwellers?
Other than mid-town Florida Blvd., what other areas will be vacated as the State consolidates downtown?
3. What is the future of high-tech office space in Baton Rouge? Bon Carre’ has brought 400,000 s.f. on the market. Although they have signed 50,000 sf, the balance still needs to be absorbed.
A. Is Bon Carre’ going to fill-up?
B. Have any of you lost a deal to Bon Carre’?
C. Was it lost due to the tax relief measures?
4. According to LSU’s Survey, occupancy rates in BR are dropping and rental rates are increasing so slowly that they have probably peaked. Anyone care to speculate where rental rates will be in 2 years?
BR Rental Rates (Class A and B)
5. What is the most notable triumph in the office market during the past year?
6. What is the biggest blunder in the office market during the past year?
7. Since everybody is moving to Livingston and Ascension Parish, will office follow?
8. What affect does the hunting season have on leasing in our market?
9. According to LSU’s survey, rates for Class A space has increased $0.62 sf/yr., since 1998. At this rate, it could take over 4 years to hit $21.00.
A. Is that when we can expect to see speculative office construction?
10. Other than Sherwood Forest, what is the coolest spot for office today? Where will it be next year?
11. Where is the Hot Spot for office in the next 12 months?
BIG Closing Question
12. What affect will market conditions such as (choose one):
a. the “bear” market
b. the interest rate environment
c. the oil and gas
d. All of the above
have on the real estate sector in the next year?