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More prominent BATON ROUGE INDUSTRIAL MARKET REPORT TRENDS IN REAL ESTATE MAY 1, 2003 INDUSTRIAL COMMITTEE MEMBERS Michael Falgoust, SIOR, Chairman - Sealy & Falgoust Real Estate, L.L.C. Marc Barker, CCIM, SIOR - NAI Latter & Blum Robert Smith, CCIM - NAI Latter & Blum CONTRIBUTORS Society of Industrial & Office REALTORS Charles Breard Photography David Lakvold, MAI, SRA - Tom Cook and Associates

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2002 INDUSTRIAL MARKET OVERVIEW The Greater Baton Rouge mechanical land showcase started 2002 as a delicate market in the repercussions of the 9-11 fear based oppressor assaults. Business put off choices on developments and new development and by and large scaled back or converged with different organizations. Transportation organizations particularly hard hit. Frail national and worldwide markets alongside high normal gas costs (due to some extent to new gas terminated vendor electric power plants) have brought about a downturn in the petro-concoction industry - which drives in expansive part our neighborhood modern land advertise. No new huge petro-compound plant extensions on the planning phase pending recuperation of household and outside business sectors. Numerous development organizations finishing ventures with couple of new tasks booked. Modern land opening levels expanded from 646,153 sq. ft. (4% opening) in 2001 to 1,491,986 sq. ft. (8% opportunity) in 2002 with a negative 453,348 sq. ft. assimilation of 2001 involved space contrasted with 2002 possessed space. Noteworthy decreases in building grants for modern related structures. Albeit generally low financing costs and a lot of cash accessible by region banks, not very many proprietor tenants/designers, at present, exploiting. On the positive side, 521,000 sq. ft. conveyance distribution center under development which was pre-rented before development and two new 60,240 sq. ft. flex structures finished in new Barringer Foreman Technology Park. The modern land showcase stock finished 2002 with aggregate 18,441,868 sq. ft.

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Industrial Inventory Data Table (*) Net assimilation is characterized as "the net change in involved space." Under Construction incorporates 521,000 sq. ft. appropriation stockroom in West Baton Rouge. Note: Inventory Data got from Society of Industrial & Office REALTORS\' Comparative Statistics Of Industrial Markets, a national review. More noteworthy Baton Rouge modern market reported by Marc Barker, CCIM, SIOR, NAI Latter & Blum, and Mike Falgoust, SIOR, Sealy & Falgoust Real Estate, L.L.C.

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Historical Vacancy & Absorption

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Land Values Land values in prime modern/business advancements for 2002 found the middle value of around $4.15 sq. ft. with other, non-prime, arrive deals averaging around $2.85 sq. ft. Empty land for bigger mechanical destinations normal in $10,000 to $12,000 section of land range for 50 or more sections of land. Prime & Other Land Values (*) Prime land deals comprise of created parks from Industriplex, Commerce South, and Highland Business Park. Other, non prime, arrive deals comprise of created ranges in Cloverland, S. Choctaw, and Ascension zones.

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Industrial Lot Sale Prices

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Industrial Lease Rates $10 to $11 sq. ft. for completed administration focuses (I.e., flex space) $3.50 to $3.75 sq. ft. for metal office/distribution centers 5,000 to 10,000 sq. ft. (See Note) $2.00 to $2.50 sq. ft. for more seasoned metal stockrooms and mall transformations 50,000 to 100,000 sq. ft. $3.25 sq. ft. (in addition) for new metal stockrooms 100,000 sq. ft. a higher range Note: Office/stockrooms with worked out office space and expert outside completions will rent $5.00 sq. ft. go.

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Mocklar Beverage - Budweiser

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MIE Barringer-Foreman Technology Center

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Sealy - Exchequer

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Sun Plus - Merrick

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2003 Industrial Market Forecast As the local and remote markets fortify so will our mechanical market. May take one to two years to bounce back. Seems a number of the arranged new trader electric power plants have been put off which ought to straightforwardness interest at regular gas costs. Since regular gas is feedstock for petro-concoction plants, costs should be close $2.00 mcf when contrasted with occasional highs of over $10.00 mcf. Something else, petro-compound plants abroad turn out to be more focused than household plants. Roughly 600,000 sq. ft. new circulation distribution center space arranged in 2003 to merge operations and take care of demand for new plants (under development before 9-11) forthcoming finished. New development ought to increment by proprietor tenants and work to suits because of proceeded with low loan costs. Almost no new spec development expected.

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