Q&A with Lee Audibert, SIOR: Propel Park
Propel Park, located on the NASA Michoud campus, is a 50-acre industrial and office park. The development plans to include more than 1 million square feet of space for tenants. At the time of this interview, it was the first new industrial construction project in New Orleans in more than 20 years.
Industrial Realty Group (IRG), based in Los Angeles, is developing the project. The company plans to invest more than $100 million in four phases.
Lee Audibert, SIOR, of Property One is the local agent responsible for leasing the project. He will represent the developer with Bill Boyer of CBRE in securing tenants and generating an income stream from the investment.
Lee was selected for his experience with large industrial projects in South Louisiana. He also brings a creative approach to challenging deals and extensive knowledge of the local market.
We sat down with Lee to discuss Propel Park and the opportunities it could bring to New Orleans.
Tenant Interest
Q: Propel Park seems like a much-needed addition to the local industrial market. What type of interest have you seen so far from tenants?
A: We’ve seen a high level of interest from both distribution and manufacturing users. People are interested in a new, modern product with modern amenities. That doesn’t currently exist anywhere else in the region.
Q: A million square feet seems like a lot. Do you think the demand is there to fill the entire park?
A: Absolutely. I think there is demand to fill up multiple parks of this size.
Most large companies look at the industrial buildings in our market, find few suitable options, and focus their attention elsewhere. With new buildings like the ones planned at Propel Park, we will capture a lot of pent-up demand that for years hasn’t been able to find a home in the New Orleans area.
NASA Michoud
Q: What are your general impressions of the NASA facility? Are there any particular advantages for Propel Park being located nearby?
A: NASA is impressive. It is the largest warehouse I’ve been in, with 45 acres under roof. It’s awesome that these high-tech aerospace operations are here in town.
After touring their facility, it was obvious that the current tenants needed room to expand. Propel Park is poised to capture any spillover while also being appealing to new tenants.
The NASA Michoud facility is protected by two levee systems with multiple on-site pumps. From a hurricane safety perspective, it’s probably the safest spot in the New Orleans area.
With NASA being out there, the campus features significant security measures. Those measures give tenants peace of mind.
Working With IRG
Q: You’ve worked with a lot of developers over the years. What’s your impression of IRG?
A: They have been very impressive and great to work with. They have the experience and capability to get a project of this scope done.
I’m very happy to be working with them. You have to have a vision for such a project and the willingness to act on that vision. IRG definitely has that.
Distribution Demand
Q: We know there’s been a lot of demand for distribution space in the area. Do you think this development works for those tenants?
A: This site is appealing to all industrial use types. For distribution specifically, it’s less than a mile from the interstate system with easy access to residentially populated areas.
Also, I think there will be synergies with the new container terminal in St. Bernard Parish for distribution and bulk storage.
Class A Industrial Space
Q: IRG will be building a Class A product. What does a Class A warehouse look like, and are there existing examples of it in the market currently?
A: Class A features concrete tilt wall construction, 32 feet or higher clear height, ESFR fire suppression systems, modern dock packages, and large truck courts with excess trailer parking.
Those are some of the basic requirements. We don’t have much Class A product in the region. The former Medline facility in Covington and the newly built Amazon facility in Slidell are two examples of Class A.
Why Now?
Q: Why do you think it took more than 20 years for such a project to get built here?
A: There are multiple reasons. We’ve typically been too small a market for national and institutional investors to focus on.
However, as industrial developments around the country get more competitive, we’re starting to see more eyes looking for opportunities and higher yields in Louisiana.
The cost to take on such projects is high, and local investors have been wary about taking on the risk.
The boom in e-commerce has also resulted in a lot of demand for distribution space. We’re now seeing companies move away from the large distribution model.
Instead, some companies are building smaller facilities, around 100,000 square feet, that are closer to population centers. They’re trying to get their products to people quicker in order to stay competitive.
That is a newer phenomenon that is creating demand for new product locally. Finally, it seems we are at the forefront of a revolution in the aerospace industry, and the NASA Michoud site is perfectly positioned to take advantage of it.
For more information about Propel Park, please contact Leon Audibert, SIOR, at (504) 681-3430.
