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INDUSTRIAL, OFFICE AND MARINE REAL ESTATE
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Brokerage, Leasing, Management and Consulting |
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MAX J. DERBES, INC. was recently honored by the New Orleans CityBusiness 2008-2009 "BOOK OF LISTS MAGAZINE" as
the largest volume commercial leasing company in Metropolitan New Orleans. Our Firms total
volume for last year was 3,741,000 square feet; the next two closest companies had volumes of 2,693,490 square feet and 2,305,805 square feet respectively.
Over the past four years Max J. Derbes, Inc. has been within the top three largest commercial leasing companies with another first place in 2007, a second place
in 2006 and third place in 2005.
THE NEW ORLEANS INDUSTRIAL MARKET continues to endure a softening cycle that started approx. a year ago and is likely to extend through at least the Fourth Quarter of 2008, if not longer.
Total available inventory is at a historic high of approx. 6,100,000 s.f., reflecting an increase of 30% since the date of our last analysis. Current available inventory is at its highest
level since the mid 1990s. Our total market inventory still approximates 53,000,000 s.f., yielding a theoretical vacancy rate for the end of the second quarter of approx. 10%. This rate reflects an
increase of two %from the first quarter. Our inventory includes approx. 1,500,000 s.f. of various older industrial buildings that will likely under-go total redevelopment. That total also includes
miscellaneous properties that are functionally obsolete awaiting adaptive reuse. Absorption increased 400,000 s.f. in the 2nd Q to 616,000 s.f.. That level is still well below a typical quarter
of 900,000 s.f. If absorption continues at its present rate, total absorption for 2008 will be 1,800,000 s.f., 50% lower than mean absorption (3,486,000s.f.) over the past ten years.
Asking rental rates, although reflecting some change, remained flat for the past four quarters. They are not expected to fluctuate for the short term. The same can be said for the range in
contributory economic pricing for industrial buildings. As in most of 2007, the greatest current demand is for free standing industrial space between 15,000 and 30,000 S.F.
THE NEW ORLEANS CLASS A OFFICE MARKET in the New Orleans CBD has held on to a strong occupancy rate plus seeing an average rental rate increase of $1.00 to $2.00 s.f. According to a recent survey Class A space
has hovered between 88 - 90%. Rental rates now range between $13.00 and $20.00 s.f. Class A office space in the Metairie CBD continues to have a low vacancy rate. Rental rates range from $22.50 to
$24.50 s.f.
Pricing for office buildings is currently achieving between $100 to $125 s.f. A majority of owner-occupants in Metairie are settled, and are not willing to sell at the present time. Those owners
umerous office leases are being signed as a result of downsizing or the occasional expansion. As Class A office buildings raise their rents to above $22.00 sq. ft, tenants whose leases are expiring
flood the market looking to maintain rates signed five years ago. Landlords who have had space available for over a year welcome these thrifty tenants.
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Fall 2008 Market Newsletter (click to downlaod)
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New Office Warehouse for Lease (click for Flier)
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Office Warehouse for Lease (click for Flier)
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Large Industrial Facility Sale or Lease (click for Flier)
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| Max J. Derbes, Inc., 5440 Mounes Street Suite 100, New Orleans (Elmwood Business Park), Louisiana
70123 Contact us @ 504.733.4555, 888.385.4949, 504.733.5518 (Fax), OR IN CASE OF EMERGENCY, 504-451-9235 / 518-396-9745 Webmaster: Tom Tripi - tom@maxderbes.com |
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