The East Baton Rouge commercial real estate market continued its upward trend in April with an increase in sales volume for the second straight month, according to Elifin Realty’s latest data.
Sales rose by 4.17% last month. The trailing 12-month total dollar sales volume was $432.1 million, up from $414.8 million at the end of March. Year-to-date sales volume reached $155 million through April, outpacing the $118 million through the first four months of 2024. Deal velocity in April dipped by 2.23%.
Retail
Sales in the retail sector showed a slight dip of less than 1%. The 12-month total dollar volume was $94.7 million last month, compared to $95.2 million at the end of March. Deal velocity decreased by 3.61%, while the average trailing 12-month price per square foot rose 6.18% from $287.16 in March to $304.90.
The Baton Rouge metro’s retail real estate market remains relatively healthy despite the persistent challenges of inflation, insurance and interest rates, according to information presented at last week’s annual TRENDS seminar. A survey of 129 area shopping centers revealed that he local retail vacancy rate has dropped from 8.02% in spring 2024 to 7.4% in spring 2025, near historic lows.
New construction remains limited outside a few outparcel deals like coffee shops and a handful of Aldi grocery stores.
Office
Sales volume increased 10.19% to $100.7 million at the end of 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. Deal velocity dipped by 1%.. Property values increased from $143.49 in March to $147.47 last month.
There is cautious optimism in the area office market, which 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
The multifamily sector experienced a 5.66% dip in sales volume. The trailing 12-month figure was $77.8 million in April compared to $82.4 million the previous month. The year-to-date sales total reached $38 million at the end of April. Sales through the first four months of 2024 totaled $36 million.
Deal velocity decreased by nearly 13% and property values increased to $72,100 per unit in April from $59,300 per unit in March, a 21.58% increase.
This sector is showing signs of softening after several years of strong occupancies and rents, partly 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. Over the same period, rents increased by nearly 5% year over year to reach an average of $1.31 per square foot. A key driver of the rising vacancy rate is the influx of new units entering the market. Last year, more than 2,000 new units were delivered, and another 1,793 units are currently under construction and slated for delivery this year or next.
Industrial and land
Sales volume decreased in the industrial sector by 6.48%. The sales volume was $49.3 million in April compared to $52.7 million in March. The price per square foot increased slightly to $66.05 from $65.63. Deal velocity declined 1.16%.
The land sector experienced increases in sales volume and deal velocity, but a dip in property values. Sales totaled $42 million last month compared to $40.6 million in March. The cost per square foot dropped to $8.75 in April from $9.29 the previous month. Deal velocity increased by 4.4%.
