Mobile Office Market Assessment 3rd Quarter 2016
Stirling Properties is pleased to present the 2016 third quarter Mobile Office Market Survey. This report, compiled by Jack Conger and Jill Meeks, Sales and Leasing Executives of our Mobile office, is intended to track average rental rates, occupancy rates, and average absorption rates for West Mobile and the downtown Central Business District (CBD) on office buildings greater than 20,000 square feet. It was created to be a resource for agents, as well as tenants, landlords, developers, lenders, fellow brokers and anyone else looking for information about the Mobile Office market.
Jack Conger is our newest Sales and Leasing Executive in our Mobile office, focusing on industrial and office brokerage. Jill Meeks has over 27 years’ experience in commercial real estate.
Here’s an excerpt from Jack and Jill’s Market Assessment:
Since the Q1-16 Mobile Office Market Survey, the West Mobile office market had a number of noteworthy transactions that created quite a stir in the market. In the end, the office market experienced a slight decrease in average occupancy from 79.5%-79.4% and an average rental rate decrease from $15.50 per sq. ft. to $15.35 per sq. ft., reflecting a decrease in the absorption rate of 0.09% from Q1-16.
Mobile’s growth is evident with several building projects planned and underway. In the CBD, a new Federal Courthouse is under construction and the Meridian at the Port, a 264-unit apartment complex located at 300 Water Street, is awaiting construction. Walmart announced plans for a new 2.9 million sq. ft. distribution center in West Mobile, and Airbus launched the first airplane assembled by its new $600 million final assembly plant back in April. This activity promises to further stabilize the office market in Mobile, and Stirling Properties looks forward to being a part of this season of growth and creativity!
Please click here to view and download the PDF of the Mobile Office Market Survey. This survey provides a good summary of the Mobile office market and my hope is that it becomes a valuable resource in the market.
Golf Fore! Good
Stirling Properties hits a hole-in-one
with its Annual Stirling Invitational Golf Tournament
The 16th Annual Stirling Invitational Golf Tournament was held earlier this month at University Club Plantation in Baton Rouge. More than 120 golfers participated in the scramble event and were treated to a great day of food, fun and fellowship—along with a little friendly competition—all for a good cause.
The tournament was a huge success, raising $30,000 for local nonprofit organizations! In support of Breast Cancer Awareness month, Mary Bird Perkins Cancer Center Foundation received $10,000 from the proceeds. The remaining proceeds were distributed to various local charitable causes.
Representatives from Mary Bird Perkins Cancer Center Foundation and LSU Tiger Athletic Foundation were on hand to receive a check for their contributions. Grady Brame, Executive Vice President of Stirling Properties (and resident golf expert!), presented a check to Todd Stevens, President and CEO of Mary Bird Perkins Cancer Center; and to Rick Perry, President and CEO of Tiger Athletic Foundation, during an awards celebration and cocktail reception following the tournament.
Todd Stevens, Jimmy Maurin, Grady Brame
What happens on the golf course does not stay on the golf course—here’s a recap of the days’ activities. The 1st Place Low Net was won by Steven Serio, Tyler Marquette, Lance McCardle and Colin O’Flynn. The Low Gross winning team included Paul Geyer, Rick Perry, Grady Brame and Jimmy Maurin. Additional awards were presented for 2nd, 3rd and 4th Low Gross and Low Net as well as 4 Closest to the Hole prizes, Longest Drive, and Highest Gross Score (we won’t name any names!).
A heartfelt thanks to all of our friends and supporters that participated and contributed to the Stirling Invitational Golf Tournament. This event would not be possible without you.
“The 16th Annual Stirling Invitational Golf Tournament was a tremendous success, and we were once again able to donate to worthy nonprofit organizations that are truly making a difference in our communities. We are grateful for the generosity of our tournament sponsors and thank everyone that came out to support us. We hope to see you again next year!” said Brame.
The Stirling Invitational Golf Tournament has contributed more than $184,000 to numerous organizations over the past 16 years, with Mary Bird Perkins Cancer Center Foundation being the majority beneficiary of proceeds. Since 2004, $117,000 has been donated to the center in support of its cancer research and care-giving efforts.
#StirlingProud
Additional sponsors include Economical Janitorial Supplies, Grass Unlimited, Calcasieu Mechanical Contractors, Robert Refrigeration, Ryan Gootee General Contractors, Thermal Products, Angelos Landscaping, Big Easy Parking Lot Maintenance, Chrestia Staub, Cost Segregation Services, Inc. (CSSI), Gulf South Electric, ITS Fire Alarm Security LLC, Massengale Grounds Management, Netchex Payroll Services, Precision Concrete Cutting of Louisiana, Republic Services, Inc., Star Service Inc., Trimark, Unit Design, Jones Fussell, BH Management Services, CBL & Associates Properties Inc., CSRS, Inc., Malone Roofing, Premier Service Team, Real Estate Tax Group, LLC, River Parish Disposal, LLC, Robert Levis Development, Southeastern Waterproofing, First Bank & Trust, Moran Construction Consultants.
A huge shout out to Fidelity Bank, Brad Jongbloed and his team, for sponsoring lunch.
British Airways to connect London & New Orleans with nonstop flights
This morning, British Airways announced it was initiating a direct flight between New Orleans and London. This is truly a “game changer” for our region and a confirmation about the outlook for the Gulf South economy.
The effort to bring British Airways back was years long and required presenting a strong regional business support throughout Louisiana and over to Mobile.
Michael Hecht, CEO of GNO Inc. stated:
“Mobile (Ala.) was a major support for us because we talked about starting up a bus service for executives from Mobile into New Orleans, so they can fly direct into Europe instead of going into Chicago.”
UPDATE: Tee It Up with Grady Brame, Executive Vice President at Stirling Properties
UPDATE: Due to a processing error some subscribers may have difficulty accessing the video associated with this blog post. To view the video in its entirety, please click here. We apologize for any inconvenience. 
We all know that Grady is a huge golfer. But did you know that he has played among some of golf’s greats, including Phil Mickelson, Justin Leonard and David Duval? He’s played in three U.S. Amateur competitions with Tiger Woods. Although they weren’t actually playing against one another, according to the scorecard, you could say that Grady beat Tiger! Grady has played amateur golf around the country and says “the more success you have, the more opportunities you will receive.” He believes much of what he has learned on the golf course is applicable to the commercial real estate (CRE) industry. So we thought it would be fun to sit down with him to get a little insight on both. Where does your passion about golf & real estate come from? “The love of golf runs in my family! My father was a scratch golfer, and his father played too. We have a long list of relatives that play. Both of my sons share a love of the game, and my oldest son has taken it to a professional level.” Grady’s attraction to golf is fueled by the thrill of competition and the determination to get better. That same logic drives his love for real estate, and got him started in the industry. “I was attracted to Stirling Properties because it was exciting and a new opportunity for me—commercial real estate was fun! I loved the idea of building new projects. The industry was challenging, but we were successful. Over the years, I’ve learned so much, and I feel that my experience really adds value to our Stirling team. Golf has given me personal achievement and fulfillment, Stirling Properties has given me professional fulfillment.” In your opinion, how are golf & commercial real estate similar? They are both competitive. I compete on the golf course to win, and I compete at the office to make a project or a real estate deal successful. In golf, you’re competing against fellow golfers, yourself and the course. In CRE, you compete against other developers contending for the best sites and negotiating with tenants on leases to get the best deal to make a project prosperous. In golf and CRE, the outcomes—or score—will tell you if you’re on the right track. At Stirling Properties, we separate ourselves from the competition by continually striving to improve. 
What golf etiquette can you apply to commercial real estate?
- Respect: Golf is an honorable game. You play by the rules, not because there is a referee or umpire enforcing them, but because it’s the right way. At Stirling Properties, we’ve always done things the right way. We treat employees, clients and tenants with respect. We’ve always been honest, held ourselves to high ethical standards, and never take shortcuts. Now, that’s paying back in dividends. A famous golfer once said, “In golf as in life, it is the follow through that makes the difference.”
- Managing Expectations: I consistently see golfers on the course expecting to beat their last score, or play better than their handicap on every hole. They set unrealistic expectations, and are usually disappointed. We always want to be the winner and put our best forward, but we need to remember not to oversell our position for investors, employees or lenders. People rely on us for projections and budgets. Predicting the future with absolute accuracy is like hitting a hole-in-one. But we have a great team in place that has been able to manage the process without overselling or setting unrealistic expectations.
- Mastering the Fundamentals: Sports psychologist, Dr. Bob Rotella noted, “A golfer has to train his swing on the practice tee, then trust it on the course.” Stirling Properties has stayed relevant and ahead of the competition for more than 40 years, because we are good at what we do. We trust our skills and instincts. We extensively evaluate every project at hand for the best possible outcomes. Sometimes, it’s about quality, not quantity.
- Control the Controllable: We will never have absolute control. In golf, there will always be the threat of wind, an ill-fated bounce or some little imperfection on the course that we have no control over. The same is true in CRE. You have to be adaptable. Do your best to manage what you can’t control, but build in contingencies for projects or deals so that if you do have a bump in the course, the deal can still work.
Any advice for young people entering the CRE industry? For anyone new to Stirling Properties—or the industry—my first suggestion is to listen and learn. You can learn a lot more from listening to others than talking on your own. You can acquire much from the people that have experience in this industry, both how to succeed and how to fail. Learn from their triumphs and mistakes! A lot of professional golfers have an entourage of coaches and experts helping them to perform.
Click here to listen to what Grady has to say about the importance of teamwork:
#StirlingProud
Tee It Up with Grady Brame, Executive Vice President at Stirling Properties
We all know that Grady is a huge golfer. But did you know that he has played among some of golf’s greats, including Phil Mickelson, Justin Leonard and David Duval? He’s played in three U.S. Amateur competitions with Tiger Woods. Although they weren’t actually playing against one another, according to the scorecard, you could say that Grady beat Tiger!
Grady has played amateur golf around the country and says “the more success you have, the more opportunities you will receive.” He believes much of what he has learned on the golf course is applicable to the commercial real estate (CRE) industry. So we thought it would be fun to sit down with him to get a little insight on both.
Where does your passion about golf & real estate come from?
“The love of golf runs in my family! My father was a scratch golfer, and his father played too. We have a long list of relatives that play. Both of my sons share a love of the game, and my oldest son has taken it to a professional level.”
Grady’s attraction to golf is fueled by the thrill of competition and the determination to get better. That same logic drives his love for real estate, and got him started in the industry.
“I was attracted to Stirling Properties because it was exciting and a new opportunity for me—commercial real estate was fun! I loved the idea of building new projects. The industry was challenging, but we were successful. Over the years, I’ve learned so much, and I feel that my experience really adds value to our Stirling team. Golf has given me personal achievement and fulfillment, Stirling Properties has given me professional fulfillment.”
In your opinion, how are golf & commercial real estate similar?
They are both competitive. I compete on the golf course to win, and I compete at the office to make a project or a real estate deal successful.
In golf, you’re competing against fellow golfers, yourself and the course. In CRE, you compete against other developers contending for the best sites and negotiating with tenants on leases to get the best deal to make a project prosperous. In golf and CRE, the outcomes—or score—will tell you if you’re on the right track. At Stirling Properties, we separate ourselves from the competition by continually striving to improve.
What golf etiquette can you apply to commercial real estate?
- Respect: Golf is an honorable game. You play by the rules, not because there is a referee or umpire enforcing them, but because it’s the right way. At Stirling Properties, we’ve always done things the right way. We treat employees, clients and tenants with respect. We’ve always been honest, held ourselves to high ethical standards, and never take shortcuts. Now, that’s paying back in dividends. A famous golfer once said, “In golf as in life, it is the follow through that makes the difference.”
- Managing Expectations: I consistently see golfers on the course expecting to beat their last score, or play better than their handicap on every hole. They set unrealistic expectations, and are usually disappointed. We always want to be the winner and put our best forward, but we need to remember not to oversell our position for investors, employees or lenders. People rely on us for projections and budgets. Predicting the future with absolute accuracy is like hitting a hole-in-one. But we have a great team in place that has been able to manage the process without overselling or setting unrealistic expectations.
- Mastering the Fundamentals: Sports psychologist, Dr. Bob Rotella noted, “A golfer has to train his swing on the practice tee, then trust it on the course.” Stirling Properties has stayed relevant and ahead of the competition for more than 40 years, because we are good at what we do. We trust our skills and instincts. We extensively evaluate every project at hand for the best possible outcomes. Sometimes, it’s about quality, not quantity.
- Control the Controllable: We will never have absolute control. In golf, there will always be the threat of wind, an ill-fated bounce or some little imperfection on the course that we have no control over. The same is true in CRE. You have to be adaptable. Do your best to manage what you can’t control, but build in contingencies for projects or deals so that if you do have a bump in the course, the deal can still work.
Any advice for young people entering the CRE industry?
For anyone new to Stirling Properties—or the industry—my first suggestion is to listen and learn. You can learn a lot more from listening to others than talking on your own. You can acquire much from the people that have experience in this industry, both how to succeed and how to fail. Learn from their triumphs and mistakes! A lot of professional golfers have an entourage of coaches and experts helping them to perform.
Listen to what Grady has to say about the importance of teamwork:
[vimeo 187254033 w=640 h=360]#StirlingProud
Walk-On’s Coming to River Chase in Covington, Louisiana!
Stirling Properties, NAI Latter & Blum and Greenleaf Architects announce Walk-On’s Bistreaux & Bar is coming to River Chase mixed-use development in Covington, Louisiana. This will mark the 1st Northshore location for the highly anticipated sports restaurant and bar.
This week, the company closed on the purchase of 1.82 acres of property located on the northwest corner of Stirling Blvd. and Brewster Road next to Sam’s Club. Construction on the site will commence within the next couple of weeks. The restaurant will occupy roughly 9,600 square feet and is expected to open by the summer of 2017, according to Arkel Constructors who has been chosen as the General Contractor.
Stirling Properties’ Senior Retail Leasing & Development Executive, Rhonda Sharkawy, represented the property owners, and Beau Bourque with NAI Latter & Blum represented the tenant. Greenleaf Architects was selected to design the custom restaurant for the new Northshore location.
The popular restaurant started by two LSU students in Baton Rouge has thrived over the years, and expanded into multiple locations. The next stop for Walk-On’s is right here in St. Tammany Parish, and Greenleaf Architects is fortunate enough to work closely with Walk-On’s Enterprises in making this happen. As a firm full of LSU graduates who frequented the original location on Burbank Drive throughout college, this is truly an honor for Greenleaf Architects. The Covington location will include a rooftop bar, “The Upper Deck”, an element unique to the design by Greenleaf Architects. The Upper Deck will feature group seating and additional space for catching a game under the skyline of St. Tammany Parish.
“Stirling Properties is pleased to welcome Walk-On’s Bistreaux & Bar to River Chase,” said Townsend Underhill, Senior Vice President of Development at Stirling Properties. “They join a dynamic assortment of restaurants, retailers, hospitality, multi-family, and office users offering a one-of-a-kind, mixed-use destination for the entire region.”
“Among other attributes, low stress ingress & egress and complementary anchor/junior anchor tenants together with Stirling Properties’ and St. Tammany Parish’s commitments to developing a live/work/play environment that improves quality of life attracted Walk-On’s to River Chase. I look forward to seeing Greenleaf Architects’ exceptional design come to life,” said Beau Bourque, Sales & Leasing Associate with NAI Latter & Blum.
River Chase is a 253-acre premier mixed-use development located on the southeast corner of Interstate 12 and LA Highway 21 in Covington, Louisiana. The center includes retail, restaurants and entertainment options, as well as a Holiday Inn Express, Regal Cinema, 500+ luxury residential apartment units, and a 48,000-sqaure-foot class A office building currently under construction. Stirling Properties developed River Chase and currently manages and leases the property.
Anchored by Target, Belk, JCPenney, Best Buy, Marshalls, Ross Dress For Less and Sam’s Club, River Chase shopping center occupies 945,000 square feet, and is the largest open air retail center in Louisiana. Additional tenants include Carter’s, Cato, Charming Charlie, Chuck E. Cheese’s, Cost Plus World Market, Dickey’s Barbecue Pit, Family Cuts, Fidelity Homestead Savings Bank, Five Below, GameStop, Hibbett Sports, Holiday Inn Express, In Style Salon, John V Salon & Spa, Justice, Lane Bryant, Maurices, Men’s Wearhouse, Michaels, Nevada Bob’s Golf, Nutrishop, Oreck Vacuums, Pink & White Nails, Regal Cinemas, River Chase Cleaners, Rooms To Go (opening 2017), rue 21, Sephora, Shoe Carnival, The Children’s Place, ULTA Beauty, Verizon Wireless, Walk-On’s Bistreaux & Bar, Which Wich and Zoe’s Kitchen. Outparcel tenants include Chick-fil-A, LongHorn Steakhouse, Regions Bank, Taco Bell, Texaco and Wendy’s.
