New players help diversify the industrial property sector in Baton Rouge

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Despite the collapse in oil prices and the pandemic, industrial real estate in Baton Rouge looked healthy in 2020, with vacancy rates of less than 6% and total inventory and floor space increased by 482,811 square feet.

Overall, the sector’s strengths over the past year demonstrate the resilience of oil and gas in the market, according to local real estate professionals. The petrochemical industry, which advertises a 6: 1 job multiplication ratio, is more than likely to reign for years to come and continue to set trends.

But the influx of new entrants into the market, namely Amazon, which is building a 3.5 million square foot distribution center on the old Cortana Mall site, will help diversify the metropolitan area’s portfolio. This wave of new construction could also signal what the future of the industry looks like.

“[Amazon] gives us another type of industrial property that wasn’t here before, ”says Ryan Greene of NAI Latter & Blum, who chaired the 2021 Industrial TRENDS committee. “Is he going to steal headlines from petrochemical companies? No, but it will be the story to follow. “

Overall, the industrial sector is adjusting to the many changes that retail has had to make against the backdrop of the massive growth of e-commerce. For example, of the 482,000 square feet of new construction built last year, 420,000 square feet were owned by Amazon, including the 300,000 square foot West Baton Rouge Amazon distribution center and the 120,000 square foot Siegen Lane distribution center.

Read the full story from latest edition Business report.



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