Last Modified: September 12, 2008Commercial Real Estate
Many people who are inside the real estate industry are anticipating a boom in commercial real estate values in Shreveport-Bossier City for a number of good reasons. An imminent rise in land prices is expected as development of the Haynesville Shale Natural Gas Field Formation progresses. This geologic deposit is believed to contain the 4th largest natural gas shale field in the world and within the last few years, several large energy companies have leased a total of 2 million acres in the vicinity of Shreveport for commercial use. Another factor that influences commercial real estate prices is the number of existing jobs in the Shreveport-Bossier City Metropolitan Area. Full-scale development of the Haynesville Shale bonanza is expected to produce 83,000 more jobs and over a period of 6 years, that is expected to increase the demand for commercial real estate by a factor of at least 50% and possibly by as much as 80%.
Good news about commercial real estate in Shreveport-Bossier City
In the aftermath of Hurricane Katrina and Hurricane Rita, federal government incentives such as low interest financing and a bonus depreciation for qualified new construction and renovations has caused an increase in new property acquisitions, new construction and commercial building renovations. Increases in square foot prices for commercial properties are occurring in shopping centers, retail districts, industrial parks, office buildings and office building complexes. For example, monthly rental rates for industrial real estate properties have increased from $3.50- $5 per sq. ft. to between $5 and $7.50 per sq. ft. over the last 10 years. During the same time period, monthly rental rates for office properties increased from $12 -$14 per sq. ft. to between $16 and $25 per sq. ft.
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