2012

PRESENTED BY

JEREMY HARSON

Beau Box Commercial Real Estate

• Total of 13,081 units surveyed

• 11,689 units in Lafayette

• 1,392 units represented

within Lafayette Parish

• 80 complexes surveyed

• Approximately 5,000 units

that were not surveyed

• There are an estimated total

or approximately 16,000 apartment

units in Lafayette

SCOPE OF RESEARCH

2012

ECONOMIC INDICATORS

• Problems in Housing Market Sales

• Supply of New Construction

Multi-Family Complexes

• Perceived Economic

Environment Improvements

• Unemployment Rate

(Local & National)

2012

UNEMPLOYMENT TRENDS

Low Unemployment = Low Vacancy

12.0

2005 2006 200920082007 2010 2011

242

563

412

1262

154

310

10.0

8.0

6.0

0.0

2.0

4.0

Lafayette Unemployment

National Unemployment

State Unemployment

Vacancy Rates

2012

OCCUPANCY RATES – ENTIRE MARKET

2004 2005 2006 2007 2008 2009 2010 2011

95%

90%

85%

80%

75%

100%

91%

95%

99%

95%

97%

89%

94% 94%

2012

SUPPLY TRENDS

1,000

1,200

1,400

0

200

400

800

600

2005 2006 2007 2008 2009 2010 2011

242

563

412

1262

154

310

New Units by Year*

*according to permits issued

2012

SUPPLY TRENDS

$ 50

$ 60

$ 70

$ 0

$ 10

$ 20

$ 40

$ 30

$5

2005 2006 2007 2008 2009 2010 2011

$13.4

$47.9

$20.5

$73.8

$14.8

$29.6

Construction Permit Dollars by Year

(Millions)

$ 80

2012

2012

MULTIFAMILY – CLASS A

Distinguishing Factors:

• Age – typically less than 10 years old

• Designed with a community focus

• Gated for security

• Resort-style amenities:

• Business centers

• Washer/dryer hook-ups

• Upgraded appliances

• Enhanced fitness

centers – gymnasiums

• Garages

RENTAL RATES – CLASS A

$ 0

$ 200

$ 400

$ 800

$ 600

$ 1,000

$ 1,200

$ 1,400

$ 1,600

1 Bedroom 2 Bedroom 3 Bedroom

$1,063

$943

$1,314$1,208

$1,344

$1,445

2010 2011

2012

OCCUPANCY – CLASS A

2010

91%

9%

2011

92%

8%

Vacant Occupied

2012

MULTIFAMILY – CLASS B

Distinguishing Factors:

• Age – typically older than 10

years old

• Older facilities with

better locations

• General parking areas

for tenants

• Laundry facilities in

common areas

• Smaller recreational areas

•Amenities:

Covered parking

Fitness centers

Multiple pools

Multiple laundry facilities

2012

$ 500

$ 600

$ 700

$ 800

$ 0

$ 100

$ 200

$ 400

$ 300

1 Bedroom 2 Bedroom 3 Bedroom

$587 $598$686

$696

$892

2010 2011

$ 900

$ 1,000

$926

RENTAL RATES – CLASS B

2012

OCCUPANCY – CLASS B

2010

97%

3%

2011

96%

4%

Vacant Occupied

2012

WHAT’S MOVING?

• University Place Apartments = 192 Units = Sold for $44,792/unit.

• Acadian House Apartments = 261 Units = Sold for $44,828/unit.

• Moss Gardens Apartments = 114 Units = Sold for $26,754/unit.

• Willow Park Apartments = 88 Units = Sold for $30,682/unit.

• Magnolia Apartments = 26 Units = Sold for $41,154/unit.

• South College Gardens = 60 Units = Sold for $41,667/unit

• Himbola Manor Apartments = 136 Units = Listed for $33,088/unit. (Under Contract)

2012

CONCLUSION

• Supply Absorption has been the going theme since 2009

with a sharp increase in Class A units.

• Occupancy levels may actually see an increase for 2012

with the lack of new construction expected to take place.

• While the Mortgage Industry is recovering, it may be some

time before it affects the rental market.

• With unemployment levels expected to stay low due to the

strong state of the oil industry and evolving local economy,

the local rental market looks to remain strong for the short

and mid-term.

2012