While most of us would gladly spend an afternoon watching countless episodes of The Office (I know I would), few of us would spend an afternoon discussing our local office real estate market (I do, but hey, it’s my job and I happen to really like it). So give me just two minutes of your time.

Our office leasing market is becoming extremely tight, which is excellent: An overall occupancy rate of 88 percent (Class A, B, and C space) is up roughly 2 percentage points from this time last year. After surveying all of our office sectors (Downtown, Oil Center, Kaliste Saloom/Pinhook, and Kaliste Saloom/Ambassador Caffery) overall, there is just not a bunch of empty space out there. Our office market is quite stable: Rental rates are climbing in just about all classes of office space, with some buildings seeing prices over $25-$30 per square foot. Landlords have been hoping for this day for some time.

A couple of current trends in the leasing market: Tenants appear to be shying away from the “everyone needs an executive office” model and shifting into larger and more open spaces. This allows for flexibility, expansion and the ability to save costs on office buildouts. Landlords are beginning to make common practice of annual rental rate bumps. This practice has been extremely common in larger markets and is now becoming quite standard here in the Lafayette market.  

Is it not time for some new office buildings here in Lafayette? I hear this question all the time. But did you know that over the last 10 years Lafayette has added more than 500,000 square feet of office space? Most of this space has come along the Kaliste Saloom/Ambassador Caffery Parkway corridor. Developments like SL Shaw & Associates’ Cordoba Square and Province Office Park along with several quality mid-rise office buildings added by River Ranch Realty have headlined these efforts. These buildings are clearly defined by their high-end finishes, low- to mid-rise style, and often times owner-occupied buildings.

Much more to come: New office development is still in the pipeline here. River Ranch Realty is putting final touches on the new Whitney Bank Building, which is close to 52,000 square feet. SL Shaw has new projects on the drawing board as well, primarily on Kaliste Saloom and along the Ambassador Caffery extension.

Several other projects are moving from the drawing board to the approval process at this very moment. Again, the vast majority of these projects will sprout up along the Kaliste Saloom/Ambassador Caffery corridor.

Two minutes. Now you can happily return to your Office reruns.

Phillip Brupbacher has been a commercial broker with Coldwell Banker Pelican Real Estate for the past five years. Contact him at This email address is being protected from spambots. You need JavaScript enabled to view it. .

To post a comment, please log into your IND account. If you do not have an account, click the "register" button to create one. Facebook comments can be used as an alternative to creating an account at theIND.com.

feed-image RSS Feed
Loading
Chart
ABiz Stock Watch
o Home Bancorp 23.15 ▲0.05 (0.22%)
o Frank's International 19.53 ▼0.40 (-2.01%)
o IberiaBank Corp 67.58 ▲0.08 (0.12%)
o LHC Group 23.96 ▼0.11 (-0.46%)
o MidSouth Bancorp 18.69 ▼0.11 (-0.59%)
o Petroquest Energy 4.11 ▲0.11 (2.75%)
o PHI Inc. 41.27 ▲0.18 (0.44%)
o Superior Energy 23.38 ▼0.84 (-3.47%)
o Stone Energy 20.83 ▼0.78 (-3.61%)
o Facebook Inc. 77.62 ▲1.99 (2.63%)
o Twitter Inc. 41.13 ▲1.37 (3.45%)
o Gannett 32.74 ▲0.48 (1.49%)
NYSE:HBCP

Home Bancorp

Company ID [NYSE:HBCP] Last trade:23.15 Trade time:4:08PM EST Value change:▲0.05 (0.22%)
NYSE:FI

Frank's International

Company ID [NYSE:FI] Last trade:19.53 Trade time:4:06PM EST Value change:▼0.40 (-2.01%)
NYSE:IBKC

IberiaBank Corp

Company ID [NYSE:IBKC] Last trade:67.58 Trade time:4:08PM EST Value change:▲0.08 (0.12%)
NYSE:LHCG

LHC Group

Company ID [NYSE:LHCG] Last trade:23.96 Trade time:4:08PM EST Value change:▼0.11 (-0.46%)
NYSE:MSL

MidSouth Bancorp

Company ID [NYSE:MSL] Last trade:18.69 Trade time:4:00PM EST Value change:▼0.11 (-0.59%)
NYSE:PQ

Petroquest Energy

Company ID [NYSE:PQ] Last trade:4.11 Trade time:4:03PM EST Value change:▲0.11 (2.75%)
NYSE:PHII

PHI Inc.

Company ID [NYSE:PHII] Last trade:41.27 Trade time:2:42PM EST Value change:▲0.18 (0.44%)
NYSE:SPN

Superior Energy

Company ID [NYSE:SPN] Last trade:23.38 Trade time:4:06PM EST Value change:▼0.84 (-3.47%)
NYSE:SGY

Stone Energy

Company ID [NYSE:SGY] Last trade:20.83 Trade time:4:05PM EST Value change:▼0.78 (-3.61%)
NYSE:FB

Facebook Inc.

Company ID [NYSE:FB] Last trade:77.62 Trade time:4:08PM EST Value change:▲1.99 (2.63%)
NYSE:TWTR

Twitter Inc.

Company ID [NYSE:TWTR] Last trade:41.13 Trade time:4:01PM EST Value change:▲1.37 (3.45%)
NYSE:GCI

Gannett

Company ID [NYSE:GCI] Last trade:32.74 Trade time:4:03PM EST Value change:▲0.48 (1.49%)
Advertisement

Read the Flipping Paper!

Click Here for the Entire Print Version of
ABiz
 
Advertisement
Advertisement