lake charles downtown residential market potential

Zimmerman/Volk Associates, Inc.Zimmerman/Volk Associates, Inc.Zimmerman/Volk Associates, Inc.

The ResidentialThe ResidentialMarket PotentialMarket Potential

ofof

Downtown Lake CharlesDowntown Lake Charles


Central Business DistrictCentral Business District Lakefront Development AreaLakefront Development Area

North: Union Pacific Railroad TracksNorth: Union Pacific Railroad Tracks East: Ryan and Hodges StreetsEast: Ryan and Hodges Streets

South: Python CouleeSouth: Python Coulee West: Lake CharlesWest: Lake Charles

The Downtown Study AreaThe Downtown Study Area


DowntownDowntown AssetsAssetsHistoric buildings.Historic buildings.

Employment.Employment.WalkabilityWalkability..

Location and Access.Location and Access.

LAKELAKE CHARLES!CHARLES!


Target Market MethodologyTarget Market Methodology

Market Market potentialpotential,, Not market demandNot market demand..


HowHow manymany are likely to move to the Study Area?are likely to move to the Study Area?WhoWho are they?are they?WhatWhat are their housing preferences?are their housing preferences?WhatWhat kindkind of housing is currently available?of housing is currently available?HowHow muchmuch is the market likely to pay?is the market likely to pay?HowHow fastfast will they rent or buy the dwelling units?will they rent or buy the dwelling units?

WhereWhere does the potential market live now?does the potential market live now?


Where DoesWhere DoesThe Potential MarketThe Potential Market

Live Now?Live Now?

Migration AnalysisMigration Analysis


The Draw AreasThe Draw AreasDowntown Lake CharlesDowntown Lake Charles

City of Lake Charles:City of Lake Charles: 29%29% Calcasieu Parish:Calcasieu Parish: 14%14%

Regional Draw Area:Regional Draw Area: 2%2%New Orleans Draw Area:New Orleans Draw Area: 4%4%

Houston Draw Area:Houston Draw Area: 9%9% Nation (LA, TX):Nation (LA, TX): 42%42%


How Many Are Likely To MoveHow Many Are Likely To MoveTo The Downtown Study Area?To The Downtown Study Area?


Annual Market PotentialAnnual Market Potential

DowntownDowntown——1,010 households1,010 households(Citywide(Citywide——4,300 households)4,300 households)


Who Are The Target Households?Who Are The Target Households?

Target Market AnalysisTarget Market Analysis


YoungerYoungerSinglesSingles

&&Couples:Couples:

64%64%


Empty Nesters & Empty Nesters & Retirees: 28%Retirees: 28%


TheTheBaby BoomBaby Boom

82 Million82 Million19461946--19641964


TheTheMillennialsMillennials

78 Million78 Million19771977--19961996


Two Generations ConvergeTwo Generations Converge

20042004--20242024

Boomers Move Down/Move BackBoomers Move Down/Move Back

Millennials Move Out/Move InMillennials Move Out/Move In


Convergence: 2004 to 2024Convergence: 2004 to 2024

35

36

37

38

39

40

41

42

43

44

45

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Millions

20 to 29

50 to 59 Basic demographic support Basic demographic support for significant increases for significant increases in downtown housing in downtown housing


The two largest generationsThe two largest generationsare mostlyare mostly

oneone-- and twoand two--personpersonhouseholds.households.


59% of all59% of allU.S. households U.S. households contain eithercontain either

one or two persons;one or two persons;64% in Lake Charles.64% in Lake Charles.


Traditional & NonTraditional & Non--Traditional Traditional Families: 8%Families: 8%


Married couplesMarried coupleswith children with children ––

now 21.6 percent of now 21.6 percent of American households;American households;Lake Charles 18.9%.Lake Charles 18.9%.


TraditionalTraditional(one(one--worker)worker)family family ––less than 10 percentless than 10 percentof Americanof Americanhouseholds.households.


9 percent of 9 percent of home purchaseshome purchasesmade by single made by single

men.men.


22 percent of 22 percent of home home

purchasespurchasesmade by single made by single

women.women.


32 percent of home purchases32 percent of home purchasesmade by couples.made by couples.


What Are The Housing PreferencesWhat Are The Housing PreferencesOf The Target Households?Of The Target Households?


61% of all61% of allU.S. housing units U.S. housing units

arearesinglesingle--family detached;family detached;70% in Lake Charles.70% in Lake Charles.


Downtown Housing PreferencesDowntown Housing Preferences

•• Rental Lofts/Apartments:Rental Lofts/Apartments: 45%45%•• ForFor--Sale Lofts/Apartments:Sale Lofts/Apartments: 30%30%•• ForFor--Sale Townhouses:Sale Townhouses: 25%25%


What Are GeneralWhat Are GeneralRent And Price RangesRent And Price Ranges

In TheIn TheLake Charles Market Area?Lake Charles Market Area?


$500 to $1,300 per month $500 to $1,300 per month 550 550 sfsf (1br) to 1,300 (1br) to 1,300 sfsf (3br)(3br)

($0.60 to $1.20 ($0.60 to $1.20 psfpsf))

General Rent RangesGeneral Rent Ranges

General Price RangesGeneral Price Ranges$200,000 to $550,000$200,000 to $550,000

1,300 1,300 sfsf (1br) to 3,500 (1br) to 3,500 sfsf (4br)(4br)($95 to $150 ($95 to $150 psfpsf))


What Are the Target HouseholdsWhat Are the Target HouseholdsWilling To Pay To LiveWilling To Pay To Live

In Downtown?In Downtown?

Studios,Studios, LoftsLofts andand ApartmentsApartmentsMonthly rents from $600 to $1,450Monthly rents from $600 to $1,450

Units containing betweenUnits containing between500 and 1,250 sq. ft.500 and 1,250 sq. ft.

($1.00 to $1.32 ($1.00 to $1.32 psfpsf))


Studios,Studios, LoftsLofts andand ApartmentsApartments

Base prices from $75,000 to $350,000+Base prices from $75,000 to $350,000+

Units containing betweenUnits containing between600 and 2,250+ sq. ft.600 and 2,250+ sq. ft.

($110 to $156+ ($110 to $156+ psfpsf))


TownhousesTownhouses

Base prices from $145,000 to $295,000Base prices from $145,000 to $295,000

Units containing betweenUnits containing between1,100 and 2,300 sq. ft.1,100 and 2,300 sq. ft.

($128 to $130 ($128 to $130 psfpsf))


How Fast Will The Target HouseholdsHow Fast Will The Target HouseholdsRent Or BuyRent Or Buy

New Downtown Housing?New Downtown Housing?


Capture of Market PotentialCapture of Market Potential228 Units Per Year228 Units Per Year

Over the Next Five YearsOver the Next Five Years

Rental Lofts/Apartments:Rental Lofts/Apartments: 115 units115 unitsForFor--Sale Lofts/Apartments:Sale Lofts/Apartments: 75 units75 units

ForFor--Sale Townhouses/LiveSale Townhouses/Live--Work:Work: 38 units38 units


DowntownDowntown ChallengesChallengesNeglected/vacant properties.Neglected/vacant properties.

High development costs.High development costs.Lack of marketing.Lack of marketing.

Isolation of the lakefront.Isolation of the lakefront.


Downtown Housing StrategiesDowntown Housing Strategies

••Preserve the built environment.Preserve the built environment.

••Support mixedSupport mixed--use development.use development.

••Develop appropriate programs Develop appropriate programs and policies.and policies.


Criteria for SuccessfulCriteria for Successful Downtown Housing Initiatives Downtown Housing Initiatives


1.1. Location:Location: Evaluate Buildings/Areas Evaluate Buildings/Areas For Residential DevelopmentFor Residential Development


•• Lofts on upper floors: Lofts on upper floors: Ryan, Division, Broad Ryan, Division, Broad Streets.Streets.

•• Downtown artist housing.Downtown artist housing.•• MixedMixed--use development on use development on

parking lots.parking lots.

The Core DowntownThe Core Downtown


•• Hotel/condominium tower.Hotel/condominium tower.•• Urban townhouses, Urban townhouses,

mansion apartments, mansion apartments, courtyard apartments.courtyard apartments.

Lakefront Development AreaLakefront Development Area


2.2. Design:Design: Ensure AppropriateEnsure Appropriate Urban DesignUrban Design


Urban.Urban.With buildings andWith buildings andfront doors that face the street . . . . . .front doors that face the street . . . . . .


Not suburban.Not suburban.. . . . .not parking lots and garage doors.. . . . .not parking lots and garage doors.


3.3. Marketing:Marketing: Market and MonitorMarket and Monitor The DowntownThe Downtown


MarketMarketDowntown!Downtown!

lake charles downtown residential market potential

Documents

zimmermanvol associates

market likely

market demandnot market

regional draw area

houston draw area

new orleans draw area

lake charleswest

target households