The industrial real estate market in Baton Rouge is seeing some “brake pumping” caused by the sudden drop in oil prices.
Scot Guidry, with Mike Falgoust & Associates, said some firms are making adjustments to deal with the 50 percent drop in oil prices that has happened over the past year. Guidry was discussing the industrial real estate market Thursday at the annual Trends in Real Estate seminar.
“The large industrial guys are still very busy,” Guidry said, noting that construction projects in petrochemical plants are still going on. “Business is good.”
The low oil prices and cheap natural gas have benefits to the petrochemical market, by making raw materials less expensive. But Guidry said the strong dollar is making exports more expensive.
While Baton Rouge is not an oil town, the area is affected by low crude prices. Guidry said some companies that aren’t doing business in the Capital Region may want to break into the market by buying properties