One of the trends noted from the annual Trends in Real Estate seminar was the significant downturn in the residential market.
From March 2007 to February 2008, 9,316 sales were reported to the Greater Baton Rouge Multiple Listing Service. But from March 2008 to February 2009, there were 7,093—a 23.9% decrease. The total dollar volume of sales also fell 22.9%.
Despite those figures, there is some good news. The average sale price held relatively stable. From March 2007 to February 2008, the average sale price reported to the MLS was $197,110. From March 2008 to February 2009, the average price was $201,700—a 2.3% increase. Additionally, the average days on the market fell from 145 in 2007 to 95 in 2008.
In Ascension Parish, the total number of sales, sales dollar volume and average sale price all decreased. From March 2007 to February 2008, the average sale price reported to the MLS was $224,529. From March 2008 to February 2009, the average price was $213,503—a 4.9% decrease.
In the condominium market, sales volume fell from 1,245 units to 872 units, or almost 30%. The average sales price, however, increased. The phenomenal fact is that the average sale price for condos from March 2004 to February 2005 was about $104,000 per unit. From March 2008 to February 2009, the average price was $196,000. Obviously, the total number of sales and the total dollar value of sales has fallen from 2007 to ’09.
The bright spot is that statistics seem to indicate decreasing inventories. More sales are taking place than there are permits being pulled for new construction. This should reduce the total supply and reduce inventories, which should, in turn, increase prices.
Linens ’N Things site leased
When Dottie Tarleton and Gretchen Grisoli with Stirling Properties were marketing the vacant Linens ’N Things building in Bluebonnet Parc, they expected to have a difficult time leasing the space given the current market conditions.
“Everyone talks about how tough the retail market is right now, but we got three letters of intent within 30 days,” Tarleton says.
Two of the potential lessees were furniture stores. One of the letters of intent came from Ben Skillman of Skill Properties, who brought in Home Furniture to lease the 32,418-square-foot building.
Tarleton says Home Furniture, a moderately priced store with locations in Louisiana and southeast Texas, currently is renovating the space. The chain recognized the excellent location, off Interstate 10 adjacent to the Mall of Louisiana, and the strength of the surrounding development, and it is optimistic about the profitability of a store in this location.
The interesting thing is that the rental rate exceeded the owner’s expectations. The lease is for a 10-year term.
Strip center sells
A 5,400-square-foot strip center at Florida Boulevard and Green Oak Drive sold for $595,000 in a deal that closed on April 1. Troy Daigle of Donnie Jarreau Real Estate Company brokered the transaction.
The purchaser was TVB Enterprises, which will continue to lease to the current tenants, including Smoothie King, Jackson Hewitt Tax Service, Red Wing Shoes and Ricky’s Creative Jewelry.
Daigle says the sale price of about $110 per square foot was an acceptable return on the investment for the new owner.
Clarification
In my last column, I wrote that D.R. Horton was purchasing homes in Arbor Walk subdivision. This particular Arbor Walk subdivision is located on La. Highway 447 south of Walker in Livingston Parish, and is not the Arbor Walk subdivision off South Harrell’s Ferry Road in East Baton Rouge Parish.
