Crane-Served Manufacturing
New
For Sale
$4,700,000
2534 Cummins Road, Houma, LA 70363
Commercial Sale, Houma, LA
Property Size61,925 SF
Lot Size5.50 Acres
Price / SF$75.90
Days on Market3
Property Features for 2534 Cummins Road
General Information
Property type
Commercial Sale
Property subtype
Other
Bathrooms
4
Full bathrooms
4
Rooms
Bathroom 1, Bathroom 2, Bathroom 4, Bathroom 3
Parking features
Parking Lot
Subdivision
Houma-terrebonne Airport Commission
Standard status
Active
Size
61,925 SF
Lot size
5.50 Acres
Taxes and HOA fees
Tax Description
BUILDINGS ON PROPERTY LEASED FROM THE HOUMA-TERREBONNE AIRPORT COMMISSION ACCT. A03C-42167. LEASE NO. HA-1-05.
Legal Description
BUILDINGS ON PROPERTY LEASED FROM THE HOUMA-TERREBONNE AIRPORT COMMISSION ACCT. A03C-42167. LEASE NO. HA-1-05.
Utilities
Sewer type
Public Sewer
Heating system
Central
Cooling system
Central Air
Water source
Public
Building Details
Building materials
Metal Const
Roof type
Metal
Listing Agency:
Canal & Main Realty
(985) 868-5230
Listed By:
Amber Landry · License #995713170
(985) 237-3427
Added: Sep 11
Changed: Sep 12
Last Checked: Sep 13 at 2:06PM
MLS# 2026016748
Copyright © 2026 Bayou Board of Realtors. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This 61,925-square-foot manufacturing facility features metal construction, a metal roof, central heating and cooling, public water and sewer, and a dedicated parking lot. The building is served by cranes, including a 50-ton crane and storage facility completed in 2024-2025. A full roof replacement across the complex was completed within the last two to three years.
The property is fully occupied by Houma Armature Works, a Nidec Motor Corporation subsidiary, under a corporate-guaranteed lease. It operates within the Houma-Terrebonne Airport Industrial Park with direct access to U.S. Highway 90. The ground lease with the Houma-Terrebonne Airport Commission is recorded through 2035 and has been extended twice. The lease structure includes an approximate 8.1% leasehold cap rate and contractual 8% escalations at each five-year renewal, with up to six future renewal options.
The property is fully occupied by Houma Armature Works, a Nidec Motor Corporation subsidiary, under a corporate-guaranteed lease. It operates within the Houma-Terrebonne Airport Industrial Park with direct access to U.S. Highway 90. The ground lease with the Houma-Terrebonne Airport Commission is recorded through 2035 and has been extended twice. The lease structure includes an approximate 8.1% leasehold cap rate and contractual 8% escalations at each five-year renewal, with up to six future renewal options.
Key Highlights
- 61,925 SF crane‑served manufacturing facility
- 100% occupied by Houma Armature Works, a Nidec Motor Corporation subsidiary
- Lease obligations are unconditionally guaranteed by Nidec
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
Industrial
$5.69M
$4.98M – $6.64M
NOI $398,195 @ 7.0% cap · market cap 8.47%
Second Best
—
—
no second resolved use
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
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Industrial in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Manufacturing property - Metal construction, central HVAC, and public utilities support ongoing industrial operations.
Where is this manufacturing property located?
The property is located at 2534 Cummins Road 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 crane‑served manufacturing facility; 100% occupied by Houma Armature Works, a Nidec Motor Corporation subsidiary; Lease obligations are unconditionally guaranteed by Nidec
