One Shell Square. Photo Via Wikimedia Commons
Corporate Realty this week released its annual New Orleans Office Market Report.
In the report, Corporate Realty President Mike Siegel noted that “Over the past several years, the New Orleans office market has shown a great deal of stability but very little growth. The Greater New Orleans office market continues to be the beneficiary of a steady stream of entrepreneurial startups and small companies’ expansions along with a handful of new ‘major’ tenants moving into New Orleans — most notably GE in 2013 and DXC Technology in 2017. Technology, medical and small entrepreneurial companies are gradually replacing the historic oil and gas-based office sector.”
The largest submarket in the Greater New Orleans market remains the Central Business District (CBD) with approximately 11.25 million square feet in a total of 27 buildings. Within the CBD, approximately 80% of the total CBD square footage is located in 15 Class A buildings. The balance of approximately 2.2 million sf is in small, generally non-competitive or single tenant non-Class A buildings. The CBD office market has “shrunk” from a high of approximately 16.5 million sf in 1990 to its present level.