The Application for Office Lease Returns in Baton Rouge
Demand for office leases has picked up in the Baton Rouge market in recent months as companies become more comfortable closing deals.
Garden offices are slightly more popular right now than multi-story buildings, says George Bonvillain, office sales and leasing partner at Elifin Realty.
Many companies have been unable to make decisions over the past two years due to the uncertainty of the pandemic, Bonvillain says, but are now in a position to move forward and drive demand. .
Garden offices have always been a popular option and asset, says Bonvillain, and many businesses are now able to secure a lower rental rate. Fares have been slashed due to low sales during the pandemic, he says, and haven’t quite caught up.
Many investors are also looking for garden offices or mid-offices as investments, he says. There is a lack of this inventory in the market and as these spaces are filled it is likely that they will be re-marketed as an investment sale.
With COVID, he says, companies have spent a lot of time reassessing their real estate goals. Many of them decided that instead of renting, they would own these garden or mid-rise offices in order to potentially have a multi-tenant building that they could expand into.
Instead of being locked into a five-year lease, he says, businesses can buy the building, collect rental income and expand into any additional space as needed.
Throughout the next year, the Baton Rouge area will continue to see smaller offices rented and purchased, says Reiss Weil, an agent for Beau Box Real Estate, and the area may even see more large converted office buildings. in apartments, like the old one Hunting towers downtown.