D
owntown Baton Rouge. (Tim Mueller)
The East Baton Rouge commercial real estate market continued its upward trend in April, with sales volume increasing for the second consecutive month. According to Elifin Realty's latest data, sales rose by 4.17% last month, bringing the trailing 12-month total dollar sales volume to $432.1 million, up from $414.8 million at the end of March.
Retail sales dipped slightly, less than 1%, with a 12-month total dollar volume of $94.7 million in April compared to $95.2 million in March. The average trailing 12-month price per square foot rose 6.18% to $304.90. Despite challenges from inflation and interest rates, the Baton Rouge metro's retail real estate market remains relatively healthy.
The local retail vacancy rate has dropped to 7.4%, near historic lows, according to a survey of 129 area shopping centers. New construction is limited outside of small projects like coffee shops and Aldi grocery stores.
Office sales volume increased by 10.19% to $100.7 million in April from $91.4 million in March. The year-to-date sales volume through April totaled $30 million, up from the $12 million earned in 2024. Property values rose to $147.47 per square foot last month.
The office market is experiencing a "flight to quality," with occupancy rates in Class A office spaces rising nearly 10%. Total occupancy increased from 68.48% to 76.30%.
Multifamily sales volume dipped by 5.66%, with a trailing 12-month figure of $77.8 million in April compared to $82.4 million the previous month. Deal velocity decreased by nearly 13%, and property values rose to $72,100 per unit last month.
The multifamily sector is showing signs of softening due to slowing absorption rates and an uptick in new apartment construction. The local apartment vacancy rate has climbed from 5.36% to 7.46% over the past 12 months.
Industrial sales volume decreased by 6.48%, with a price per square foot increasing slightly to $66.05. Deal velocity declined 1.16%. The land sector experienced increases in sales volume and deal velocity, but a dip in property values, with a cost per square foot dropping to $8.75 last month.
