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Trends in Real Estate 2003

Trends in Real Estate 2003

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Trends in Real Estate 2003

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  1. Trends in Real Estate 2003 Presented byLSU Real Estate Institute and Commercial Investment Division of the Greater Baton Rouge Association of Realtors Dottie Tarleton, CCIM Vice President Stirling Properties The Baton Rouge Retail Market

  2. Typical Shopping Center By Dottie Tarleton, CCIM

  3. Center in the Eyes of the Developer By Dottie Tarleton, CCIM

  4. Major Tenant Concept By Dottie Tarleton, CCIM

  5. City Father’s Concept By Dottie Tarleton, CCIM

  6. REINVENTING RETAIL 1973 – 2003A TOUR OF SOME OF THE MOST PROMINENT CENTERS IN BATON ROUGE By Dottie Tarleton, CCIM

  7. Esplanade Mall By Dottie Tarleton, CCIM

  8. Esplanade Mall • The first enclosed mall built in Baton Rouge • Built in 1973- anchored by Rubenstein’s Department Store. • Reinvented itself into an Entertainment Mall as hotels and offices users crowded the landscape after the extension of Corporate Blvd. in the late 80’s. By Dottie Tarleton, CCIM

  9. Cortana Mall By Dottie Tarleton, CCIM

  10. Cortana Mall • Built in 1974 • Slowly evolved as the retail climate changed • Fashion Park • Cortana Square • Freestanding retailers-Lowe’s, Just for Feet, Old Navy By Dottie Tarleton, CCIM

  11. Cortana Mall By Dottie Tarleton, CCIM

  12. Cortana Mall • Wal-Mart Super Center • Bed, Bath and Beyond • Shoe Carnival By Dottie Tarleton, CCIM

  13. Oak Villa Extension By Dottie Tarleton, CCIM

  14. Mall of Louisiana By Dottie Tarleton, CCIM

  15. Mall of Louisiana • Mall was built in 1997 • Bluebonnet Parc was built in 2002 • Separate ownership • The retail mix between the two centers compliment each other By Dottie Tarleton, CCIM

  16. STRIP CENTERS By Dottie Tarleton, CCIM

  17. Concord Park By Dottie Tarleton, CCIM

  18. Concord Park • Built in 1972- Anchored by Kmart and National Grocery Store. • Tenants have changed but the center is still discount oriented. • Good design By Dottie Tarleton, CCIM

  19. Village Square By Dottie Tarleton, CCIM

  20. Village Square • Built in three phases with construction starting in 1976. • Anchored by Kroger, Service Merchandise, and K & B Drugs. • Precursor to the power center. • Design is functionally obsolete in today’s market. By Dottie Tarleton, CCIM

  21. COMING SOON!YOUR FRIENDLY NEIGHBORHOOD WAL-MART SUPERCENTER By Dottie Tarleton, CCIM

  22. Village Square By Dottie Tarleton, CCIM

  23. Siegen Village By Dottie Tarleton, CCIM

  24. Siegen Village By Dottie Tarleton, CCIM

  25. Siegen Village • Built in 1985 but later expanded. • United Artist and Kmart were the original tenants. • Newest Discount Store—Big lots By Dottie Tarleton, CCIM

  26. THE POWER CENTER By Dottie Tarleton, CCIM

  27. Hammond Aire Plaza By Dottie Tarleton, CCIM

  28. Hammond Aire Plaza • Built in 1985 • First Power Center in Baton Rouge • Value Oriented • Category Killer Stores—Shoe Station, Michaels, Home Depot • Neighborhood Component—Jr. Department Stores: Stein Mart, Burlington Coat Factory, Marshall’s By Dottie Tarleton, CCIM

  29. The Mixed Use Concept By Dottie Tarleton, CCIM

  30. Citi Place By Dottie Tarleton, CCIM

  31. Citi Place • Built in 1995 • First mixed use project in Baton Rouge • Combines office, entertainment, restaurants, and retail all in one project By Dottie Tarleton, CCIM

  32. Siegen Lane Regional Shopping District 2003 By Dottie Tarleton, CCIM

  33. Siegen Lane Regional Shopping District 2003 • Zero to 1.2 million square feet of discount and off price retail in 20 years • And so – the point is that the mall is no longer the king of regional retail!!!! • Marketplace at Siegen Lane 700,000 sq. ft. • Target Plaza 353,000 sq. ft. • Siegen Village 174,378 sq. ft. TOTAL 1,227,378 sq. ft. By Dottie Tarleton, CCIM

  34. The State of Wal-Mart • $240 Billion in sales annually • 3 Million Associates • Most respected company on Fortune 500 List • Biggest employer in 21 States • World’s biggest grocer, driving down prices an average of 13% in the markets they enter. • One of the contributing factors for low inflation “Everyday Low Prices” By Dottie Tarleton, CCIM

  35. The State of Wal-Mart (cont.) • Two daily non-stop flights from LaGuardia Airport to Bentonville daily. Zero non-stop flights to any other cities in Arkansas from LaGuardia • Baton Rouge MSA-New Super-centers to begin construction in 2003 Location Baker 186,000 Sq. Ft. Cortana 223,000 Sq. Ft. College Dr. 188,000 Sq. Ft. Prairieville 207,000 Sq. Ft. TOTAL NEW SQ. FT. 2003 804,000 Sq. Ft. By Dottie Tarleton, CCIM

  36. The State of Wal-Mart (cont.) • Small Marts– Neighborhood Grocery Store By Dottie Tarleton, CCIM

  37. The State of Wal-Mart (cont.) • Newest Wal-Mart concept • 40,000 sq. ft. grocery store with drive thru pharmacy. • Gas pumps in some locations where space permits. • Scouting sites in Baton Rouge now. By Dottie Tarleton, CCIM

  38. The New Kid on the BlockLife Style Centers • Caters to the needs and lifestyle of their customers. • Are usually upscale projects located near affluent neighborhoods. • Size is usually 150,000 – 500,000 sq. ft. • Centers are usually open air and include at least 50,000 sq. ft. devoted to national upscale chain specialty stores offering apparel, home goods, books and music. By Dottie Tarleton, CCIM

  39. The New Kid on the BlockLife Style Centers (cont.) • Typical tenants may include Ann Taylor, Banana Republic, Barnes and Noble, Bath and Body Works, Gap Concepts, Pottery Barn, Talbot’s, William Sonoma, Chico’s and a mixture of local successful mom and pop operators. • Specialty grocery stores such as Whole Foods may also be found in lifestyle centers. By Dottie Tarleton, CCIM

  40. Town Center at Cedar Lodge • Proposed new development to be built on the Witter Tract at Corporate Blvd. and Jefferson Hwy. By Dottie Tarleton, CCIM

  41. Town Center at Cedar Lodge (cont.) • 440,000 mixed use development • Office • Retail • Restaurants • Zoning has been approved By Dottie Tarleton, CCIM

  42. Sales Tax Collections East Baton Rouge Parish 1999-2000 Year to date 2003 Sales Tax (Jan.-Feb.) is up 4.7% By Dottie Tarleton, CCIM

  43. Rents and Vacancies • Overall rents are up and vacancy is down. • Overall 2002 rents are up 18% over 2001. • Overall vacancy has fallen 4.74% over 2001. • Neighborhood centers experienced a decrease in vacancy from 26.57% to 16.62%. Rents increased from $10.43 psf to $11.99 psf. By Dottie Tarleton, CCIM

  44. Rents and Vacancies (cont.) • Community Centers experienced an increase in vacancy from 16.63% to 18.37%. Rents increased from $9.07 psf to $11.13 psf. • Regional centers experienced a decrease in vacancy from 6.79% to 1.56 % with an increase in rent from $20.85 psf to $29.72 psf. *Market place a Siegen Lane was added to the survey which contributed to the decline in the vacancy rate. By Dottie Tarleton, CCIM

  45. Rents by Shopping Center Type Community Overall By Dottie Tarleton, CCIM

  46. Vacancies by Shopping Center Type Community Overall By Dottie Tarleton, CCIM

  47. Total Retail Building Permits By Dottie Tarleton, CCIM

  48. New Big Box Construction 2001 Petsmart Siegen 19,250 sq. ft. Wal-Mart Central 184,435 sq.ft. Kirschman’s Furniture Siegen 55,000 sq. ft. Rack Room Shoes Siegen 8,000 sq. ft. TOTAL 266,685 sq. ft. By Dottie Tarleton, CCIM

  49. New Box Construction 2002 Best Buy Bluebonnet 45,416 sq. ft. Linen’s N Things Bluebonnet 32,380 sq. ft. Books A Million Siegen 12,540 sq. ft. Cost Plus Bluebonnet 18,349 sq. ft. David’s Bridal Bluebonnet 9,867 sq. ft. Lifeway Christian Books Bluebonnet 10,000 sq. ft. Rave Movie Theatre O’ Neal Lane 73,292 sq. ft. TOTAL 201,844 Sq. Ft. By Dottie Tarleton, CCIM

  50. Big Box Space Proposed and Under Construction Year To Date 2003 Ross Dress For Less Siegen 30,187 Sq. Ft. Petco Siegen 13,500 Sq. Ft. Co-Op Book Store Burbank Dr. 26,124 Sq. Ft. Stoma’s Furniture Addition Perkins Rd. 10,000 Sq. Ft. Walgreen’s Perkins Rd. 14,490 Sq. Ft. Wal-Mart Cortana 223,000 Sq. Ft. Wal-Mart Baker 186,000 Sq. Ft. Wal-Mart College Dr. 188,000 Sq. Ft. Wal-Mart Prairieville 209,000 Sq. Ft. Academy Siegen 75,000 Sq. Ft. Bed, Bath and Beyond Cortana 20,000 Sq. Ft. Shoe Carnival Cortana 10,000 Sq. Ft. TOTAL 1,005,301 Sq. Ft. By Dottie Tarleton, CCIM