Mobile Office Market Assessment 1st Quarter 2016
Stirling Properties is pleased to present the 2016 first 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 the direction of the office market by establishing an absorption rate, a market occupancy rate and an average rental rate 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 Q3-15 survey, the office buildings surveyed in this report in West Mobile experienced a very modest increase in average occupancy rate from 80% to 80.1%, and the average rental rate decreased from $15.61 to $15.45/per square foot. West Mobile has a fair amount of older, unimproved office space available at below-market rental rates that contributes to low rental rates. We have seen several new Healthcare related expansions in West Mobile and expect that this trend will continue around the hospital campus.
In the CBD, there was a decrease in the occupancy rate from approximately 72% to 65.9%, and average rental rates decreased from $17.42 to $17.29/per square foot. The decrease in the occupancy rate is due in part to a few notable transactions: Regions Bank’s consolidation of its St. Francis Street and Water Street branches, Servis1st Bank’s relocation to the redeveloped Phelps Dunbar office at Royal and Dauphin Street, and lastly, BBVA Compass Bank and Phelps Dunbar’s move into RSA’s recently completed Van Antwerp renovation.
Overall leasing activity in updated CBD office buildings continue to be solid, along with demand for smaller renovated historic properties.
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.
Stirling Properties Brokers Sale Of 16.1 Acres For Walmart Supercenter In Carencro, Louisiana
Carencro will soon have a WalMart Supercenter! Stirling Properties commercial real estate company has brokered the sale of 16.142 acres to Wal-Mart Real Estate Business Trust for the development of a WalMart Supercenter. The 182,000-square-foot store is expected to hire up to 300 workers.
The soon-to-be supercenter will be located at 3810 NE Evangeline Thruway in Carencro, South Louisiana, near the northwest corner of Interstate 10 and Interstate 49 intersection, just outside the City of Lafayette.
Ground was broken earlier this month, with anticipated opening in early 2017.
Stirling Properties Sales and Leasing Executive, Seth Citron and Senior Retail Leasing and Development Executive, Ryan Pécot handled the transaction.
“We are excited to be a part of the growing community in Carencro. Residents here have anxiously awaited the arrival of a WalMart, and now they are finally getting it,” said Seth Citron, Stirling Properties Sales and Leasing Executive. “Stirling Properties is happy to continue our long and successful relationship and brokerage history in South Louisiana and surrounding areas.”
Since 2011, Stirling Properties has handled 2,255 transactions, with $1.3 billion in commercial sales volume, and currently has more than 81 million square feet of property and land for sale or lease, almost exclusively in Louisiana. Stirling Properties management and development projects in the Lafayette area include Ambassador Town Center, Ambassador Row, Stirling Lafayette, Village at Southpark, Retreat at Acadian Point and Pinhook Office Center, just to name a few.
Stirling Properties is located in Pinhook Office Center at 1819 West Pinhook Road, Suite 200 in Lafayette, Louisiana. For more information regarding our services, please visit us at stirlingproperties.com.
Stirling Properties Welcomes 1st Northshore Sephora and Announces Updates to River Chase in Covington, Louisiana
Stirling Properties commercial real estate company is pleased to welcome the 1st Sephora to Northshore New Orleans, and announces new updates to River Chase mixed-use development in Covington, Louisiana. 
- The popular national beauty-retail chain, Sephora, will occupy 2,100 square feet inside JCPenney department store. Utilizing a smaller footprint, the retail chain will feature the signature Sephora look and beauty assortment. This will mark the fifth Sephora location in Louisiana, and the first for the Northshore. A grand opening is scheduled for June 17th.
- Pre-leasing opportunities have begun for Phase 1 of the Offices at River Chase, a new Class-A office building that will be located at the southwest corner of Brewster Road and Stirling Blvd. The site is now being cleared, and construction of the first 45,000-square-foot, two-story office building is anticipated to begin in the summer of 2016, with initial tenant occupancies planned for 10 to 12 months later.
- Site work has commenced on the new 36,000-square-foot Rooms-To-Go next to Zoe’s Kitchen. The furniture retailer is relocating from its current store on Hwy. 190 in Covington, and is on track to open in the first quarter of 2017.
- Construction has begun on Springs at River Chase, through a joint venture with Continental Properties. The new 296-unit luxury apartment community will be located at the southwest corner of Interstate 12 and Brewster Road. The property will feature floor plans ranging from studio to three-bedroom, and community amenities will include a clubhouse, resort-style pool, 24-hour fitness center, dog park, attached and detached garages, car care center and a pet spa. The first units will be available in August 2016, with anticipated fully built out completion in first quarter, 2017.
- Plans are also underway for the development of 182 single-family luxury homes, adjacent to Springs at River Chase apartment community, through a joint venture with Southern Lifestyle Development. Phase I will include the completion of 81 luxury homes.
- Salon by InStyle is open inside JCPenney, as part of an exclusive collaboration with the editors of InStyle magazine to reinvent its salons nationwide. The new concept salon features the latest in haircare, styling and products. A grand re-opening was held last week.
- Five Below, a new-to-market bargain retailer, which sells everything for $5 or less, celebrated its grand opening earlier this month. This is one of only three stores located in Louisiana.
River Chase is the premier mixed-use development on the Northshore, located amidst 253 acres of prime interstate property adjacent to the Tchefuncte River, with direct access to Interstate 12 via two interchanges that bound the eastern and western borders of the development and Louisiana Highway 21. The center includes retail, restaurants and entertainment options, as well as a Holiday Inn Express, 14-screen stadium style Regal Cinema and residential apartment units. Additional residential and office developments are coming soon. 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. River Chase continues to be a leading regional shopping and restaurant destination, as well as a vital economic contributor to the region. Additional tenants include John V Salon & Spa, 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, Justice, Lane Bryant, Maurices, Men’s Wearhouse, Michaels, Nevada Bob’s Golf, Oreck Vacuums, Pink & White Nails, Regal Cinemas, River Chase Cleaners, rue 21, Sephora (open July 2016), Shoe Carnival, The Children’s Place, ULTA Beauty, Verizon Wireless, Which Wich and Zoe’s Kitchen. Outparcel tenants include Chick-fil-A, LongHorn Steakhouse, Regions Bank, Taco Bell, Texaco and Wendy’s. “Stirling Properties has been at the forefront of commercial real estate investment and development in St. Tammany Parish and surrounding areas of South Louisiana. We were instrumental in bringing large-scale retailers here,” said Townsend Underhill, Stirling Properties Senior Vice President of Development. “St. Tammany remains one of our most important areas and we are proud to call the parish home to our Corporate Office.” Stirling Properties developed River Chase, with Phase I beginning in 2002, and currently holds the contract for management and leasing of the center. Stirling Properties has developed more than 3.7 million square feet totaling $465 million since 2010, and manages nearly 17 million square feet of property, almost exclusively in Louisiana. Other Stirling Properties management and development projects in St. Tammany Parish include Fremaux Town Center (Slidell), Stirling Slidell, The Crossing (Slidell), Premier Centre (Mandeville) and Northpark Corporate Center (Covington), just to name a few. Stirling Properties was also influential in creating supporting infrastructure, such as the I-12 corridor connecting River Chase and Brewster Road to Hwy. 21 in Covington. For more information, please visit stirlingproperties.com. For information on River Chase, visit river-chase.com. For retail leasing and sales, contact Rhonda Sharkawy at (504) 620-8145 or rsharkawy@stirlingprop.com. For office leasing and sales, contact Ryan Murphy at (985) 246-3771 or rmurphy@stirlingprop.com.
Stirling Properties Awarded Management Contract For Fern Marketplace In Shreveport, Louisiana
Stirling Properties commercial real estate company was recently awarded the management contract for Fern Marketplace in Shreveport, Louisiana. Stirling Properties handles leasing opportunities for the center and will now take on daily management.
Fern Marketplace is a 29-acre retail project anchored by Whole Foods Market, consisting of roughly 275,000 square feet. The shopping center is located at the northeast corner of East 70th Street and Fern Avenue, near the intersection of Youree Drive, which is the most heavily populated corridor of retail and services in Shreveport and Northern Louisiana. National retailers located within one mile of this center include Super Target, Belk, Bed Bath & Beyond, Old Navy, JCPenney, Kohl’s, Dick’s Sporting Goods, Barnes & Noble, Lowe’s, Cost Plus, World Market, T.J.Maxx, and Sam’s Club, just to name a few. The area growth rate, high income level and location will be sure to allow the tenants at Fern Marketplace to experience substantial retail sales. Most of the retailers committed to Fern Marketplace are either first-time locations within Shreveport or Louisiana, or both.
Currently, the only business open at the shopping center is GRUB Burger, which opened in January of this year marking its second Louisiana location. Whole Foods Market is scheduled to open in the Fall of 2016. This will be the sixth Louisiana location for the organic food chain store.
Fern Marketplace Phase I consists of roughly 75,000 square feet and tenants include Grub Burger (now open), Lee Nails (opening Spring 2016), Whole Foods Market (opening Fall 2016) and much of the remaining square footage is in different stages of negotiation with announcements to occur over the coming months. Phase II consists of roughly 200,000 square feet of which various type uses will add to the mix of the first phase.
“We are confident in the future and prosperity of this area. Fern Marketplace is positioned in an excellent location that is experiencing tremendous growth and attracting new retailers,” said Donna Taylor, Stirling Properties Senior Vice President-Asset Management & New Business. “We are happy to continue our long and successful brokerage and property management history in the Shreveport/Bossier City market.”
Stirling Properties has been at the forefront of commercial real estate management, investment and development in Shreveport/Bossier City and surrounding areas of North Louisiana, and is committed to bringing quality development and retailers to the area. At completion, Fern Marketplace is expected to be a premier regional shopping and entertainment destination, as well as a vital economic contributor to the area.
Stirling Properties currently manages almost 17 million square feet of property, with 81 million square feet of property and land for sale or lease, almost exclusively in Louisiana. Other Stirling Properties management and development projects in Shreveport/Bossier City include, Stirling Bossier Shopping Center, Eastgate Shopping Center and Old River Marketplace, just to name a few.
For more information, please visit stirlingprop.com.
For leasing or sales information, contact Rhonda Sharkawy at (504) 620-8145 or rsharkawy@stirlingprop.com. For asset management information, contact Donna Taylor at (985) 898-2022 or dtaylor@stirlingprop.com.
Louisiana State University Takes 3rd Place In Global ARGUS Software University Challenge
Propels national spotlight on growing educational real estate programs
Stirling Properties commercial real estate company is pleased to announce students from Louisiana State University (LSU) E.J. Ourso Business School have placed 3rd in the global 2016 ARGUS Software University Challenge.
For the past several years, ARGUS Software has hosted the competitive challenge for university students from around the world aspiring to be real estate professionals. Through this challenge, students create real-world investment strategies through informed decisions using ARGUS solutions. A panel of judges from the academic community and industry participated in reviewing the case studies and nominating the winners.
More than 40 top real estate programs from national universities participated in the competition. The team from LSU—Jason Wyman, Eddie Saa, Jacob Kerr, Alysha Meadors and Robin Day—was coached by Stirling Properties Asset/Finance Manager, Justin Landry. Landry serves as an adjunct professor teaching Finance 7720 (Commercial Real Estate Investing). This is the 5th year an LSU team has competed in the ARGUS Software Challenge, and marks the 1st time placing under Landry’s leadership.
“Our team is thrilled to have placed among the top three teams in the country, especially among such prestigious schools and highly respected real estate programs,” said Robin Day, 2016 ARGUS Software University participant from LSU. “We were given the invaluable opportunity to learn from real-world scenarios. The challenge was a direct correlation to the types of trials real estate industry professionals encounter on a daily basis. Working as a team from various backgrounds allowed us the chance to share ideas and learn from one another. We created a more robust solution by combining our diverse knowledge bases than any of us could have accomplished individually.”
LSU’s team secured $2,000 for their university through ARGUS Software. In addition, the students were bestowed the 2016 ICSC Maurin Ogden Foundation LSU Scholarship Award, funded by Jimmy Maurin and Roger Ogden, founders of Stirling Properties. Through the scholarship, students will receive all-expense-paid attendance to the ICSC RECon Convention in Las Vegas. Each year Stirling Properties chaperones five LSU Award Recipients to the convention, offering the students valuable exposure to industry leaders and potential employers.
“This scholarship has been tremendously successful, and we’ve had a handful of students who received jobs as a result of attending the conference. But none of this would be possible without the generosity of Stirling’s founders, Jimmy Maurin and Roger Ogden. There are no two people more committed to LSU, real estate and education,” said Landry. “We couldn’t be more proud of this team of students. They have worked so hard for all that they have accomplished this semester.”
Coming on the heels of other recent LSU E.J. Ourso Business School advancements, this is another significant win that students and supporters hope will propel a national spotlight on the growing finance and real estate programs at the university.
For more information about Finance 7720 (Commercial Real Estate Investing) and its objectives contact Justin Landry at jclandry@stirlingprop.com.
Stirling Properties is located at United Plaza, 8550 United Plaza Boulevard, Suite 303 in Baton Rouge, Louisiana. For more information regarding our services, please visit us at www.stirlingproperties.com.
President’s Message: Disrupt or be disrupted.
Recently, I attended a seminar at New Orleans Entrepreneur Week titled CEO Disrupt Breakfast featuring Steve Case, founder of AOL and one of America’s best-known and most accomplished entrepreneurs, and (New Orleans native) Walter Isaacson, president & CEO of the Aspen Institute and national writer and journalist.
The rudimentary theme was that companies must disrupt themselves from time to time, or they will be disrupted by external forces, and eventually decline or fail. I considered how this applies to Stirling Properties and the commercial real estate industry as a whole.
Business disruption is a reality that companies face on a regular basis. The largest cause of disruption is the rapid progression of technology and globalization, which allows new business models to be introduced at an ever-increasing rate. Companies must disrupt or be disrupted—we must shake up the status quo—and deviate from the normal way of doing things.
But business disruption is nothing new. We see multitudes of instances throughout history. For example, plastic disrupted the production of metal and wood, typewriters were disrupted by word processing software, electric cars disrupted the automobile industry, Wikipedia displaced traditional encyclopedias, iTunes disrupted the music industry, Uber disrupted the transportation industry, Airbnb is disrupting hoteliers, and the list goes on and on. Companies like Apple, Google, Amazon, and Starbucks are constantly finding new ways of disrupting themselves to stay relevant and remain a crucial part of our daily lives.
So how do we survive in a world of disruption, continually improve our position, and seize opportunities? We must be proactive and adaptive. Disruption is necessary to create opportunity. Many leaders agree, “If you are not growing, you are dying.” Change is inevitable, and businesses must be willing to adapt in order to prosper.
According to Disrupt author, Luke Williams, “In a business world of nonstop change, there’s only one way to win the game: transform it entirely. This requires a revolution in thinking—a steady stream of disruptive strategies and unexpected solutions.”
There are many factors that threaten to disrupt us locally. The economy and state budget shortfalls, the oil & gas industry, and even politics, all have the ability to considerably change our environment.
Additionally, the commercial real estate industry is evolving at lightning speed. E-commerce and Internet shopping have already significantly disrupted the retail industry! Many companies are quickly adapting to new trends, such as embracing technology, incorporating omnichannel marketing strategies, integrating mixed-use developments, and engaging millennials. In order to get ahead, we have to move away from traditional real estate models. We have to transform the market landscape.
I am proud to say that Stirling Properties has done this throughout its history, most notably over the last five years. Our leadership recognized that in order to thrive in this market, we had to identify new and unique opportunities to grow and diversify.
We expanded our business model and strategically focused our attention toward property acquisition and creating opportunities for investors to put capital into real, tangible property across the Gulf South. Earlier this year, we purchased Turtle Creek Crossing shopping center in Hattiesburg, Mississippi, marking the largest retail acquisition in our 40-year history! Since 2010, we have acquired over $200 million in property, totaling 2.1 million square feet—including the Pan American Life Center, which has become the hub of our New Orleans commerce.
We are continuing to invest in multi-family housing. We’re increasing our company reach and footprint by expanding into new geographical areas throughout the Gulf South, as well as new industries, such as healthcare. These are all examples of projects and strategies that differ from our normal. Consider the results of this since 2010:
- Total gross revenue has increased by 140%
- Management fees are up 67%
- Square footage under management has grown by 50%
- Development fees have increased by 145%
- Watch our complete Stirling Properties highlight video
We can be certain there’s going to be more change in the next five, ten and twenty years. But the potential for improvement is all around us, and it’s a truly exciting time for Stirling Properties, our community, and our industry.
Stirling Properties will continue to explore new ways to disrupt ourselves, and we look forward to reaping the opportunities that are produced!
