The industrial real estate market in Ascension Parish continues to operate under tight conditions, even as broader Baton Rouge trends show rising vacancy driven by a handful of large properties, according to Evan Scroggs of Lee & Associates.
Presenting at the Greater Baton Rouge Association of Realtors’ 2026 Trends seminar last week, Scroggs outlined that while overall vacancy in the Baton Rouge MSA climbed to 4.38% at the end of 2025, the increase is largely concentrated in North Baton Rouge, with Ascension and South Baton Rouge accounting for a relatively small share of available space. Together, those submarkets had roughly 321,000 square feet of vacant inventory—underscoring continued supply constraints in Ascension Parish.
That limited availability is especially pronounced for larger users. Scroggs noted that tenants seeking more than 50,000 square feet still face significant challenges finding space, a dynamic that continues to define the Ascension industrial corridor.
Demand drivers in the parish are evolving. Manufacturing has emerged as a growing share of industrial activity, reflecting broader national trends and aligning with major project announcements across the Capital Region. Industrial investment tied to large-scale developments—including steel and chemical manufacturing projects between Baton Rouge and New Orleans—has reinforced Ascension’s position as a key growth market.
“I think there’s between 60 and $70 billion of the projects occurring between Baton Rouge and New Orleans,” Scroggs said.
Owner-occupants have also played a more prominent role locally, driving some of the market’s largest transactions over the past year. In contrast, third-party logistics users—often a major source of absorption nationally—were largely absent from leasing activity in 2025, diverging from earlier expectations.
New construction remains measured. Of the roughly 374,000 square feet under construction across the region, more than two-thirds is tied to a single project, the 254,000-square-foot Rivermark 185 Building 2 project in Geismar. Building 1 of Rivermark 185 sold for $34.45 million in the second quarter of 2025. The 200,000-square-foot property was built in 2023 and 100% occupied at the time of the sale.
Industrial real estate accounted for $83.9 million in 2025—nearly 40% of the total commercial investment in the parish. Geismar alone accounted for $65.4 million in commercial transactions, nearly a third of the entire parish’s total. Industrial deal values more than tripled on average compared to 2024.
Looking ahead, Scroggs said he expects vacancy in Ascension to remain stable and localized, with little indication of a broader softening. He also points to the potential for new large-scale developments—particularly buildings exceeding 200,000 square feet—to begin taking shape in Ascension as demand continues to build.
Additional demand could come from secondary effects of nationwide data center expansion. Scroggs added that while Baton Rouge is unlikely to attract large data centers directly, contractors and subcontractors supporting those facilities are expected to generate industrial demand in nearby markets, including Ascension Parish.
