SOUTHEAST SNAPSHOT, OCTOBER 2006

Baton Rouge, Louisiana Retail Market

In the wake of Hurricane Katrina, Baton Rouge’s population has continued to grow. This growth has contributed to the Baton Rouge’s retail sector expansion. Anchor-sized retailers like Super Wal-Mart, Wal-Mart Neighborhood Market, Super Target, The Home Depot, Lowes Home Improvement Warehouse, Cabela’s and Bass Pro Shops are expanding their presence in the market. Several national retailers such as Kohl’s, Anne Taylor Loft, Pottery Barn, Whole Foods, Z Gallerie, White House Black Market and Fresh Market are entering the market for the first time. These new tenants are signing leases in new mixed-use lifestyle centers like Towncenter at Cedar Lodge, Perkins Rowe and The Boulevard. Baton Rouge is also experiencing the redevelopment of older centers vacated by former anchors like Albertson’s, Winn Dixie and Wal-Mart. These redevelopments will include second or third generation space-valued retailers and/or storage space conversions.

Creekstone Capital Corporation’s Towncenter at Cedar Lodge is currently Baton Rouge’s most prestigious retail center with more 440,000 square feet of retail space anchored by Whole Foods. Construction exceeded $80 million and included apartments, offices, restaurants, banks and retail shops. Towncenter at Cedar Lodge attracted new retailers to area and has set records for overall sales volume.

Another retail development underway is JTS Interest’ Perkins Rowe, which is a nationally recognized mixed-use lifestyle center that is attracting new retailers to the Baton Rouge market. It is improving nearby land values and spurring more development in the area as users flock to locate close to Perkins Rowe. The upscale construction and high overall quality will help improve future projects in its area.

In north Baton Rouge, located across the street from the metro airport and close to Southern University’s campus, Howell Place is currently under construction. It has attracted a surgery center, a hotel, restaurants and gas stations. Future big box development at Howell Place should spark additional development in the area.

Baton Rouge’s retail market is also experiencing expansion to existing sites. General Growth’s The Boulevard is a 135,000-square-foot expansion of the Mall of Louisiana that will likely attract several new national retailers to enter the Louisiana market via Baton Rouge. Construction of the retail space is currently under construction and a Rave theater has already opened on the site. The Boulevard will set a new benchmark for rental rates and increase overall sales per square foot at the Mall of Louisiana.

In addition to the newly added retail developments and the retail expansions, plans are in the works for even more retail space. Burbank at Lee Drive is a proposed 550-acre development project near the Louisiana State University campus that will dramatically impact the immediate area and the overall market with additional big box stores, large scale in-line space, shop space, outparcel users, apartments and a large single-family component.

Also, Cabela’s, located at the intersection of Interstate 10 and Louisiana Highway 30, has received approval. This 175,000-square-foot retail project will greatly affect the Gonzales submarket of Baton Rouge. It will attract other large stores and shops to the area. The development of a Bass Pro Shops, located at Interstate 12 and Louisiana Highway 16, is awaiting approval, which seems eminent, and it will have a tremendous affect on the Denham Springs submarket in a similar manner.

With all of the new development rising in Baton Rouge, some of the key retail real estate companies playing a role include JTS Interests, Creekstone Capital Corporation, RW Day, General Growth, Equity One, Mall Properties, Kimco, Commercial Properties Development Corporation, Thompson Land Company and Donnie Jarreau Real Estate.

As previously mentioned, due to the new developments, Baton Rouge is welcoming new retailers to the area. Some major leases that have recently been signed include Whole Foods’ 40,000 square feet on Towncenter Corporate Boulevard, Fresh Market’s 22,000 square feet at Perkins Rowe, Kohl’s 86,000 square feet at Siegen Marketplace, Ashley Home Furniture’s 40,000 square feet at Baker City Shopping Center, and Office Depot’s 20,000 square feet at Spring Park Plaza and 20,000 square feet on Zachary Lane.

Baton Rouge’s retail market is benefiting from the surge in population the city has experienced. With so many new developments and retailers in the area, the market continues to expand. Future developments in Gonzales and Denham Springs, as mentioned before, will help these areas grow with the rest of the city. The Bluebonnet Boulevard corridor is also an area to watch as Baton Rouge’s retail market continues to boom. 

— Austin Earhart is a retail specialist with NAI Latter & Blum in Baton Rouge, Louisiana.

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