Downtown Office Market Picks Up Steam

by CSB Staff • February 3, 2014 • Office • Comments (0) • 4486

Via Wikimedia Commons

Office absorption is up across the metro area across Class A and Class B properties.

According to the Office Occupancy and Absorption Study by SRSA Real Estate, overall absorption of Class A and Class B properties came in at 163,648 square feet for 2013. Close to 9% of all available Class A & B office space in the CBD was absorbed last year.

This pushed the occupancy rates for Class A & B buildings to 85.2% in the CBD. 7 of the 14 Class A buildings had occupancy rates exceeding 90%.

The only building across Class A and Class B properties to have 100% occupancy is the IP Building at 643 Magazine Street, which houses startups, incubators, and new companies like Launch Pad, the Idea Village, 4.0 Schools, and the Domain Companies.

The once vacant former Chevron building now known as the Exchange Center is now 79.2% occupied.

1250 Poydras had the lowest Class A occupancy rate for Q3 at 73.8%.

1010 Common had the lowest Class B occupancy rate for Q3 at 41.0%.

One Sheel Square had the highest absolute absorption throughout the year at 63,073 square feet.

Rents increased for class A properties due to the lower vacancy rates, but still run about 5.00/sq.ft cheaper than Metairie.