It wasn’t exactly a banner year for the East Baton Rouge Parish commercial real estate market. The parish ended 2024 on a lower note with a dip in sales transactions and deal velocity, according to Elifin Realty’s latest data.
Sales declined 9.53% in December. The trailing 12-month total dollar volume of sales was
$394.2M at the end of December compared to $435.7M at the end of November.
Deal velocity was down less than one percent.
For the year, the total sales hit $394 million, down from $614 million in 2023.
Jonathan Walker of Maestri Murrell told Daily Report earlier this month that he expects the area’s commercial real estate market in 2025 to resemble 2024. Fewer expected rate cuts and the continuing high construction costs, insurance rates and borrowing costs will continue to affect the market.
Multifamily
The multifamily sector saw an 11.05% increase in sales volume last month. The trailing 12-month figure was $76 million compared to $68.5 million in November. Deal velocity increased 9.68%, and property values increased to $53,400 per unit in December, up from $48,600 per unit the prior month. The total dollar volume of sales in 2024 was $76 million, down from $222 million in 2023. It was the sector’s lowest mark in at least nine years. There were 34 multifamily deals in 2024, which were six less than the previous year.
Retail
Retail saw a slight dip in the 12-month trailing sales volume last month. The dollar volume decreased 1.45% to $87.3 million compared to $88.6 million in November. Deal velocity remained steady while the average trailing 12-month price per square foot increased 4.16% to $296.96 from $285.11 in November. The total retail sales volume in 2024 was $87 million, down from $106 million in 2023. There were 89 retail deals in 2024, 12 more than in 2023.
Office
This sector experienced decreased sales volume and deal velocity but increased property values. Sales volume declined 14.56% from $97.1 million in November to $83 million last month. Property values increased slightly, from $144.34 average price per square foot in November to $145.64 in December. Deal velocity was down 2.44%. The total sales for the year in this sector was $83 million, compared to $101 million in 2023. It was the lowest mark since 2020.
Industrial and land
Industrial sales volume was down 1.67% to $52.9 million. The price per square foot increased from $62.96 in November to $63.95 last month. Deal velocity remained steady. The total sales volume in 2024 was $53 million, down slightly from the $58 million in 2023. There were 89 industrial sales last year, the sector’s highest mark in nine years.
Sales decreased 8.92% in the land sector. The volume totaled $40.3 million last month compared to $44.2 million in October. The cost per square foot increased 10% to $10.66, up from $9.69 at the end of November. Deal velocity went down nearly 7%. The sales volume in 2024 was $40 million compared to $69 million in 2023. There were 42 land sales last year, down from 75 in 2023.
