The Industrial Real Estate Market in Baton Rouge
Industrial Zoning
The East Baton Rouge zoning codes, decided by the Planning Commission, lay out the regulations and uses approved in industrial areas. There are two zones, M1 and M2. The verbage defining the two zones only differ by one word: light versus industrial manufacturing.
M1
The purpose of M1 is to permit light manufacturing, fabricating, processing, and wholesale distribution activities located near or adjacent to roads as shown on the Major Street Plan.
M2
The purpose of M2 is to permit industrial manufacturing, fabricating, processing, and wholesale distribution activities located near or adjacent to roads as shown on the Major Street Plan.
Most industrial uses are approved for either M1 or M2 zoned areas. However, there are a couple of exceptions. Below are some examples of approved uses in each zone:
The purpose of zoning is “to allow local and national authorities to regulate and control land and property markets to ensure complementary uses.” When considering industrial land, it is important to think about surrounding land. Industrial usage can produce unpleasant smells and sounds, making it undesirable to be right next to recreational and residential areas as well as certain other businesses.
Currently, in East Baton Rouge Parish, only two commercial listings are marketed as M2 zoning. All others are zoned for M1 use.
Location and Availability
In real estate, location is everything… and even more so in industrial real estate. Proximity to main roads and highways, rail spurs and waterways, and other geographic factors have a huge impact on industrial land desirability. Keeping logistics costs down is imperative, so considering proximity and traffic congestion are important, especially for truck-heavy industries.
While there are other pockets, industrial land in Baton Rouge is focused on two main corridors: North and South.
Northern Industrial Corridor
Located North of I-12, the Northern industrial corridor follows much of Choctaw Drive from Downtown to North Flannery.
Southern Industrial Corridor
The heart of the Southern corridor is Industriplex, which is located off Siegen Lane between I-10 and I-12. There are also pockets continuing South along Airline Highway and I-10 to the EBR Parish line.
This map depicts the general areas in which these corridors are located
Limited Market Quantities
Like most markets, the Baton Rouge market does not have an abundance of industrial space available for sale or lease. Because of zoning, few areas have industrial sites, and creating new ones is difficult. Scarcity drives demand for these properties up, as well as investment trends. Real estate investors may prefer industrial sites because, generally, a more hands-off approach can be taken.
At the time of publication, the following number of industrial properties are for lease and sale by corridor in East Baton Rouge Parish:
As the above bar chart depicts, there is no abundance of available property.
Key Takeaways:
Most of the vacant industrial land for sale is located in the Northern Industrial Corridor.
Industrial space for lease is spread pretty consistently between the two corridors.
Most of the industrial buildings for sale are located in the Northern Industrial Corridor, but there is more for lease in the Southern Industrial Corridor.
While there are 16 buildings marketing industrial land for lease, many of those buildings are sub-divided with multiple tenant spaces available.
