2003 CID Trends May 1, 2003

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2003 CID Trends May 1, 2003

• Office Market Trends Presentation

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2003 CID OFFICE TRENDS COMMITTEE

• Lacy Howe, Peek/Howe Real Estate, Inc. Chairman
• Dianne Bankston, Larry E. Bankston Appraisals
• Steve Legergne, Sealy Falgoust Real Estate
• Branon Pesnell, NAI Latter Blum
• Carlos Slawson, LSU Real Estate Research
  Institute
• Jonann Stutzman, JTS Interests
• Collier Thornton, Thornton, Harvison, and Rhodes
  Real Estate
• Debbie Usrey, Latter Blum
• Brad Way, Peek/Howe Real Estate, Inc.

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Panelists

• Brad Way
• Tom Cook
• Ben Johnson
• George Kurz
• Edward Rotenberg

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Brad Way, Moderator

• Senior Property ManagerPeek /Howe Real Estate,
  Inc.
• Over 20 years in the Commercial real estate field
• Specializes in commercial management and leasing

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Tom Cook

• Owner, Appraisal Services
• Over 23 years in the real estate Appraisal field
• Past President of the Louisiana Chapter of the
  Appraisal Institute
• Past President of CID
• Current Trends Chairman

Before Trends
AfterTrends
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Ben Johnson, CCIM, CPM, SIOR

• Sales Manager, Latter Blum
• Over 28 years in the Commercial and Industrial
  real estate business
• Formed Johnson Properties in 1983 which he sold
  to Latter Blum in 1995
• Sales Manager for Latter Blums Commercial
  brokers

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George Kurz

• Partner, Kurz Hebert Real Estate

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Edward Rotenberg, SIOR

• Associate Broker, Sealy Falgoust Real Estate
• Over 18 years in the Commercial real estate
  business
• Industrial member of SIOR
• Former Board Member of CID
• Specializes in sales and leasing of industrial
  and commercial properties.

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Questions for Panelists
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Office Occupancy

• 1. The LSU Office Market Study for Fall of 2002,
  indicates that although occupancy is down from
  Fall, 2001, there was at least 114,000 s.f. added
  to the A B office inventory during this time
  period.Whats up with that? The Opportunity
  Rate

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Opportunity Rate
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Bon Carré

• Bon Carré will be full in 12-18 months- Ben
  Johnson and Tom Cook, Trends 2001

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Bon Carré

• 2. Other than build-to-suit any hope for
  speculative general office space?Is it enough to
  really care?

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Fair Competition

• 3. Competing on a Level Playing Field?What do
  Tax Incentives and Foundations have to do with
  developing prime real estate?

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Ascension andLivingston Parishes

• 4. Ascension and Livingston are the fastest
  growing parishes in the State. Will office
  follow?If so, any significant players
  relocating?Who are the significant players?

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Interest Rates

• 5. Interest Rates have been near historically low
  levels for a long time. When they go up what
  affect will they have onA. Leasing
  ?B. Sales?C. The highly leveraged?

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Downtown

• 6. According to the LSU Study, downtown Baton
  Rouge appears to be outperforming most other
  markets- Is this really happening?- What
  continued affect will downtown have on suburban
  markets?- What will pop its bubble?

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Office Segments

• 7. Many Changes are occurring in these
  fieldsA. MedicalB. Engineering /
  EnvironmentalC. Dot-ComD. Sublease- Who is
  occupying space?- What are their plans?- Whos
  it going to affect?

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Predictions
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Predictions

• 8. Where is the Growth Spot for office in the
  next 12 months?

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2003 CID Trends May 1, 2003

• Office Market Trends Presentation