CENTURY 21 Bessette Flavin · Commercial Division
The Louisiana
Commercial Compass
Statewide Outlook
Louisiana's $217 Billion Moment — And the Nuance Behind It
Louisiana is in the midst of an industrial capital investment wave that few states can match. According to economist Loren Scott, the state has roughly $98.1 billion in industrial projects currently underway and another $119.1 billion announced — a pipeline dominated by liquefied natural gas export terminals, petrochemical manufacturing, and emerging AI data center infrastructure.
The macro picture, however, is more nuanced than the capital figures suggest. A recent report from The Data Center notes that while global companies have poured over $90 billion into the state over the past decade, population has declined by approximately 52,000 residents and job growth has remained near flat at just 0.18% — compared to 10.4% nationally over the same period. Meanwhile, skyrocketing insurance premiums have pushed Louisiana's property value rankings from 26th in the nation (2015) to third from the bottom by 2024.
"A mix of steady economic growth and rising uncertainty is shaping Louisiana's real estate outlook — good news and not-so-good news."
— Economist Loren Scott, 2026 Trends in Baton Rouge Real Estate Seminar
For commercial real estate practitioners, the key takeaway is this: the industrial and logistics sectors are genuinely thriving, driven by global energy demand and supply chain reshoring. Office and retail markets, by contrast, continue to adjust to hybrid work norms and evolving consumer patterns, with performance bifurcating sharply between Class A assets in prime submarkets and everything else.
Tariff-driven policy volatility remains a wild card. Tax cuts and deregulation are creating tailwinds, but uncertainty is dampening some investment decisions — particularly in rate-sensitive asset classes like office. Our counsel: play to Louisiana's established industrial strengths, but approach speculative development with disciplined underwriting.
Sector Report
Industrial & Logistics: Louisiana's Undisputed Strength
Industrial vacancy across Louisiana markets remains near historic lows, and demand fundamentals are structurally sound. The shift toward LNG export, renewable energy installations, and petrochemical processing has diversified energy-sector commercial real estate demand well beyond upstream exploration — adding significant resilience to what was once a more cyclical market.
Nationally, industrial and warehouse space is expected to account for approximately 24% of total commercial real estate industry revenue. Demand is stabilizing after the e-commerce-fueled surge of recent years, but Louisiana's differentiated position — port access, intermodal connectivity, and cheap energy infrastructure — keeps it in a favorable posture relative to inland markets. Construction activity is strongest near major highways, the Calcasieu Ship Channel, and Gulf Coast rail lines.
Megaproject Pipeline — Selected Q1 2026 Activity
RiverPlex MegaPark — Hyundai Steel Facility
Ascension Parish's RiverPlex MegaPark has secured a major Hyundai steel facility expected to bring approximately 1,400 high-paying jobs, with additional industrial tenants already in the pipeline. This development is reshaping demand for both industrial and ancillary commercial space throughout the I-10 corridor.
Venture Global — Plaquemines & Cameron LNG Terminals
Venture Global's Plaquemines LNG Export Terminal is now operational, with the first LNG cargo departing for Poland in April 2026. Combined with the Cameron LNG facility, southwest Louisiana is cementing its position as America's primary LNG export corridor — a designation that is generating sustained demand for port-adjacent industrial and logistics real estate.
Meta AI Data Center — Holly Ridge, Louisiana
Meta's hyperscale data center campus in Holly Ridge is under active construction as of March 2026, representing one of the largest single technology infrastructure investments in Louisiana history. Data center development in Louisiana is accelerating, with the state's abundant power infrastructure and fiber connectivity positioning it alongside Northern Virginia, Phoenix, and Dallas–Fort Worth as a major emerging node.
LNG & Chemical Modular Construction Activity
Iberia and St. Mary parishes are experiencing significant industrial contractor activity as modular components for Gulf Coast LNG and chemical facilities are assembled using regional port infrastructure. This is generating strong near-term demand for temporary and permanent industrial facilities throughout the Houma–Thibodaux corridor.
Advisor Intelligence
Port of Lake Charles: Foreign Trade Zone Advantage
The Port of Lake Charles manages over 203 square miles of port district, with several key industrial parcels currently available — including 359-acre Industrial Park East and a 283-acre former Proman/G2X deep-water site with direct Calcasieu Ship Channel access. All port district properties fall within Foreign Trade Zone 87, providing meaningful operating-cost advantages for import/export businesses. For clients with industrial needs, this represents a genuinely differentiated location opportunity.
Sector Report
Retail: Neighborhood Centers Lead, Discretionary Adapts
Retail is the quiet performer in Louisiana's Q1 2026 commercial landscape. Overall retail demand scores approximately 68 out of 100 in current market assessments — meaningfully outperforming the office sector — with neighborhood-anchored and grocery-anchored centers continuing to lead. The bifurcation is between necessity-based retail (performing well) and discretionary/destination retail (still adjusting).
Grocery-Anchored: Strong Destination Retail: SelectiveIn Baton Rouge, retail accounts for the largest share of commercial real estate for lease, with 809,480 square feet across 69 active listings. The highest concentrations of retail leasing activity are in Richland Plantation–Walnut Hills, Perkins Rowe, and revitalized blocks in the Mid City district. Retail properties in Baton Rouge average approximately 35,510 square feet, with the largest available asset at 8888 Airline Hwy (53,414 sq ft).
Mid City District
Walkable storefronts on Government Street generating strong customer loyalty. Mixed-use development blending retail with upper-floor office increasing foot traffic durability.
SW Roundabout Development
An 8-acre commercial development in Southeast Lake Charles offering prime visibility along State Highway 27 — one of the area's most active commercial corridors.
The industrial boom does carry a retail tailwind: well-paid energy and manufacturing workers generate sustained demand for food-and-beverage, services, and convenience retail near project corridors. In southwest Louisiana and the Ascension Parish I-10 corridor, retail developers should be watching residential population shifts that follow major industrial employment announcements.
For Lake Charles retail specifically, the market is in a measured recovery. The Louisiana Chamber Foundation's LA Launch Center — designed to support small business incubation and co-working with conference and event capacity — represents a new model for flex-retail-office hybrid space that aligns with how SMBs in the region are operating today.
Market Spotlight
Lake Charles: America's Energy Corridor Reasserts Itself
Lake Charles has navigated one of the most extraordinary cycles of any mid-size American city — catastrophic hurricane losses in 2020–21 followed by an accelerating recovery anchored in its identity as a global LNG export hub. In Q1 2026, the market is showing genuine momentum, though insurance costs and population dynamics remain headwinds for the residential and certain retail segments.
Key Positioning
"America's Energy Corridor" — No. 1 LNG Export Area in the World
The Port of Lake Charles encompasses 203 square miles of port district along the Calcasieu Ship Channel. With Venture Global's Cameron LNG now shipping cargoes to Europe and Asia, and additional LNG expansion investment in the pipeline, the commercial real estate case for Lake Charles industrial properties is as strong as it has been in a generation. Foreign Trade Zone 87 designation provides tangible operating cost advantages for port-adjacent occupants.
Key industrial parcels currently available through the Port include the 359-acre Industrial Park East site (zoned Heavy Industrial/Manufacturing, with rail and I-10 truck access) and the 283-acre former Proman/G2X waterfront site — a deep-water asset with direct Calcasieu Ship Channel access suitable for heavy industrial investment. These are generational land positions for the right operators.
For the commercial retail and office segments, the story is more measured. Recovery is real but gradual. The LA Launch Center — a business innovation center offering co-working, private offices, and event space — is targeted to open in the Lake Charles market in 2026, representing the type of flexible-use development that aligns well with the area's SMB recovery trajectory. Retail along the Highway 27 corridor is showing sustained activity, with new commercial pads advancing near high-traffic nodes.
Our net assessment: Lake Charles is a market for patient, thesis-driven investors who understand the energy economy. Industrial is compelling; office and retail require careful submarket selection and a realistic underwriting of the insurance cost environment.
Q1 2026 Market Snapshot
At a Glance: Sector Conditions
| Sector | Market | Signal | Key Watch Factor |
|---|---|---|---|
| Industrial / Logistics | Statewide | ↑ Strong | LNG / energy pipeline continuity |
| Industrial / Logistics | Lake Charles | ↑ Very Strong | Port FTZ activation; tariff-driven reshoring |
| Industrial / Logistics | Baton Rouge / Ascension | ↑ Strong | RiverPlex buildout; I-10 logistics corridor |
| Office — Class A | Baton Rouge | → Stable | Flight-to-quality; hybrid work norms |
| Office — Class B/C | Baton Rouge | ↓ Soft | Tenant consolidation; adaptive reuse potential |
| Office | Lake Charles | → Rebuilding | Flex/co-work demand; SMB recovery pace |
| Retail — Grocery Anchored | Statewide | ↑ Outperforming | Necessity retail resilience |
| Retail — Corridor / Pad | Baton Rouge | → Selective | Industrial employment halo; HWY 30 corridor |
| Retail | Lake Charles | → Measured Recovery | HWY 27 corridor activity; population stability |
Featured Listings
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