The residential and commercial real estate markets are benefiting from the Capital Region’s economic boom, but a lack of vacant office space could be a hurdle in the future, Baton Rouge Area Chamber President and CEO Adam Knapp told those at BRAC’s annual presentation of its regional economic outlook this morning.
“It’s an ideal time to invest in building office space,” Knapp said.
But BRAC Executive Director of Business Development Iain Vasey said that investors are not putting up the cash for a reason. They aren’t building, he said, because lease rates don’t quickly make a return on the price of land and construction costs. The vacancy rate for functional office space is 7% and could drop to as low as 3% in the next two years, Knapp said. Vasey added that the current inventory of available office space may not be desirable. Daily Report has the full story.
