Crane-Served Manufacturing
New
For Sale
$4,700,000
2534 Cummins Rd, Houma, LA 70363
Industrial manufacturing facility with crane service, full occupancy, and a corporate-backed net-lease structure.
Property Size61,925 SF
Lot Size5.55 Acres
Price / SF$75.90
Days on Market6
Property Features for 2534 Cummins Rd
General Information
Standard status
Active
Size
61,925 SF
Lot size
5.55 Acres
Property subtype
Industrial
Zoning
I1
Occupancy
100%
Financials
Cap Rate
8.1%
Gross Income
$486,000
Site & Location
Highway Access
Yes
Road Access
Yes
Amenities
Power
Water
Sewer
Building Details
Tenancy
Single
Listing Agency:
Canal & Main Realty
Listed By:
Shantelle Abshire · License #995699245
(985) 852-1137
Source:
Lacdb.resimplifi
Added: Sep 11
Changed: Sep 14
Last Checked: Sep 16 at 1:12PM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Canal & Main Realty
Investment Insights
Based on property information with market context.
This 61,925-square-foot manufacturing facility occupies a 5.55-acre leasehold and is served by a 50-ton crane. The building is fully occupied by Houma Armature Works, a Nidec Motor Corporation subsidiary, under a lease guaranteed by Nidec. The property is zoned I1 and includes a roof replacement completed across the complex within the last two to three years.
The site is located in Houma-Terrebonne Airport Industrial Park with direct access to U.S. Highway 90 and the Houston-to-Gulf energy corridor. The ground lease with the Houma-Terrebonne Airport Commission is recorded through 2035 and has been extended twice. A storage facility was completed in 2024–2025 in connection with the tenant’s investment in the crane and site operations. The leasehold reports an approximate 8.1% cap rate and includes contractual 8% escalations at each five-year renewal, with up to six future renewal options.
The site is located in Houma-Terrebonne Airport Industrial Park with direct access to U.S. Highway 90 and the Houston-to-Gulf energy corridor. The ground lease with the Houma-Terrebonne Airport Commission is recorded through 2035 and has been extended twice. A storage facility was completed in 2024–2025 in connection with the tenant’s investment in the crane and site operations. The leasehold reports an approximate 8.1% cap rate and includes contractual 8% escalations at each five-year renewal, with up to six future renewal options.
Key Highlights
- 61,925 SF manufacturing facility on a 5.55‑acre leasehold
- 50‑ton crane and storage facility completed in 2024–2025
- 100% occupied by Houma Armature Works, a Nidec Motor Corporation subsidiary
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$398,195
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
8.47%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$7,963,900
$8.0M
Cap Rate 7%
$5,688,500
$5.7M
Cap Rate 9%
$4,424,389
$4.4M
Market Conditions
NOI Build-Up for 61,925 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$587.0K $9.48/SF
− Vacancy
−$18.2K −$0.29/SF
EGI
$568.9K $9.19/SF
− OpEx
−$170.7K −$2.76/SF
NOI
$398.2K $6.43/SF
Area
Terrebonne County, LA
Vacancy
3.10%
Lease Rate
$9.48 /SF/Yr
Expense Ratio
30.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$7,963,900
Cap Rate 7%
$5,688,500
Cap Rate 9%
$4,424,389
Alternative Uses
Best Use
Warehouse
$6.91M
$6.04M – $8.06M
NOI $483,523 @ 7.0% cap · market cap 10.29%
Second Best
Industrial
$5.69M
$4.98M – $6.64M
NOI $398,195 @ 7.0% cap · market cap 8.47%
Theoretical Best
Office A
$17.07M
$14.94M – $19.92M
NOI $1,194,905 @ 7.0% cap · market cap 25.42%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
100%
Occupancy
Single-tenant
Tenancy
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
406
Businesses Nearby
Explore this area
Business Placement
Demographics for 70363, LA
25,319
Population
10,449
Households
2.4
Avg Household Size
36
Median Age
8%
College-Educated
75%
High-School Grad
78.4 sq mi
ZIP Area
323
Density / Sq Mi
$44,828
Median Household Income
$33,176
Median Earnings
$1,054
Median Rent
$143,800
Median Home Value
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Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Industrial in South region
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Frequently Asked Questions
What type of property is this?
Manufacturing property - Industrial manufacturing facility with crane service, full occupancy, and a corporate-backed net-lease structure.
Where is this manufacturing property located?
The property is located at 2534 Cummins Rd Houma, LA.
What is the asking price?
The asking price for this property is $4,700,000.
What are key features of this property?
This property features: 61,925 SF manufacturing facility on a 5.55‑acre leasehold; 50‑ton crane and storage facility completed in 2024–2025; 100% occupied by Houma Armature Works, a Nidec Motor Corporation subsidiary
