Listing Agency: Momentum Commercial Real Estate c***@momentum-commercial.com Show Phone

Listed By: Charlie Colvin · License #LA

Source: Crexi

Added: Jan 29 Changed: Aug 8 Last Checked: Aug 26 at 9:38AM

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Investment Insights

Based on property information with market context.

Located in the heart of South Louisiana’s energy corridor, the property at 918 Geraldine Road offers an industrial facility with expansive acreage. The site encompasses approximately 10 acres and features an industrial building suited for various applications, including fabrication, equipment storage, or distribution. The building has a size of 25000 square feet.

Key Highlights

• Well‑located industrial facility in South Louisiana’s energy corridor.
• Expansive ±10‑acre site.
• Ideal for fabrication, equipment storage, or distribution.

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

$195,205

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

6.79%

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%

$3,904,100 $3.9M

Cap Rate 7%

$2,788,643 $2.8M

Cap Rate 9%

$2,168,944 $2.2M

Market Conditions

NOI Build-Up for 25,000 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

$237.0K $9.48/SF

− Vacancy

−$7.3K −$0.29/SF

EGI

$229.7K $9.19/SF

− OpEx

−$34.4K −$1.38/SF

NOI

$195.2K $7.81/SF

Area

Terrebonne County, LA

Vacancy

3.10%

Lease Rate

$9.48 /SF/Yr

Expense Ratio

15.00%

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%

$3,904,100

Cap Rate 7%

$2,788,643

Cap Rate 9%

$2,168,944

Alternative Uses

Best Use

Warehouse

$2.79M

$2.44M – $3.25M (±1% cap)

NOI $195,205 @ 7.0% cap · market cap 6.79%

Second Best

Mixed Use

$2.46M

$2.16M – $2.88M (±1% cap)

NOI $172,500 @ 7.0% cap · market cap 6.00%

Theoretical Best

Office A

$6.89M

$6.03M – $8.04M (±1% cap)

NOI $482,400 @ 7.0% cap · market cap 16.78%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Mixed-use properties

Location Intelligence

Trade Area within ½ mile

11

Businesses Nearby

Explore this area Business Placement

Demographics for 70356, LA

2,298

Population

699

Households

3.3

Avg Household Size

43

Median Age

4%

College-Educated

72%

High-School Grad

66.6 sq mi

ZIP Area

35

Density / Sq Mi

$31,630

Median Household Income

$623

Median Rent

$117,900

Median Home Value

Market

Vacancy Rate% for Industrial in South region

6% 2019

6.5% 2020

4% 2021

3.5% 2022

6% 2023

7.6% 2024

7.9% 2025

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Frequently Asked Questions

What type of property is this?

Industrial property - Well-located industrial facility with expansive acreage in South Louisiana.

Where is this industrial property located?

The property is located at 918 Geraldine Rd Gibson, LA.

What is the asking price?

The asking price for this property is $2,875,000.

What are key features of this property?

This property features: Well‑located industrial facility in South Louisiana’s energy corridor.; Expansive ±10‑acre site.; Ideal for fabrication, equipment storage, or distribution.