B.R. Trends 2012: Real estate pros predict better times ahead

For the most part, real estate markets in the Baton Rouge area have stabilized after a rough few years, with positive signs cropping up in several sectors, according to speakers at today’s annual Baton Rouge Trends real estate seminar, hosted by the Commercial Investment Division of the Greater Baton Rouge Association of Realtors. “The bleeding has stopped,” says Don Stern, a realtor who spoke about residential trends. State privatization is bringing major new tenants into the office market, while low natural gas prices are driving industrial expansions, creating cautious optimism for landlords in the industrial real estate sector. Apartment rental rates are flat, although a slight uptick is possible in 2012. “We are starting to see some money come back into the market,” says Brian Andrews of Andrews Commercial Real Estate Services. “Right now, apartments are getting the most attention out there in the finance world.” Andrews says interest rates are “damn low,” although some banks can’t make any new real estate loans now, thanks to regulatory pressures. He says in 2011 banks were under pressure to get their credit quality under control but that in 2012 they will be under earnings pressure, meaning lenders are going to be hungry. For more details from today’s presentations on the region’s various real estate sectors, read the full story here. —David Jacobs