The New Orleans Commercial Real Estate Market

Shanti Ryle

October 30, 2025

Downtown New Orleans street lines with shops and vehicles

Key Takeaways

New Orleans offers investors a differentiated risk profile anchored by port access, logistics infrastructure, and a diversified employment base, supporting steady long-term demand despite slower population growth than peer Sun Belt markets.
Industrial fundamentals remain tight, with low vacancy and rising rents near the Port of New Orleans and major highways, positioning well-located assets for durable cash flow even as absorption moderates.
Office and retail markets benefit from limited new supply, which has helped keep vacancy below national averages and created opportunities for investors focused on stabilized assets and selective value-add strategies.
Multifamily continues to deliver some of the strongest yield metrics in the market, with higher cap rates, modest new construction, and rent growth providing income-focused investors with attractive relative returns.

New Orleans has spent the past decade rebuilding and reinventing itself, blending rich cultural roots, bold redevelopment, and a creative spirit. As one of the Gulf South’s most dynamic commercial corridors, it draws national tenants, developers and investors who see its value as both a logistic gateway and lifestyle destination.

At Crexi, we connect buyers, lenders and brokers interested in New Orleans commercial real estate with hundreds of high-potential listings and the tools they need, ranging from research and market insight to acquisition and deal-management. Our platform has helped brokers across the region close more than $610 billion in commercial property transactions and market over $7 trillion in assets.

We’re proud to serve New Orleans, Metairie, Kenner, LaPlace, Slidell and the surrounding areas, supporting this market’s growth with data, clarity and speed

A view of the more modern side of New Orleans, with downtown buildings poking into the sky

New Orleans Commercial Real Estate Market Overview

New Orleans continues to balance its historic character with modern growth, making it one of the Gulf South’s most distinctive commercial markets. Its location along the Mississippi River keeps the city central to national trade and logistics, while its diverse economy - spanning tourism, energy, healthcare, and technology - helps stabilize long-term demand.

Downtown landmarks like Hancock Whitney Center and Place St. Charles still anchor the skyline, even as the market adapts to new work trends and tighter lending conditions. High interest rates and rising costs have slowed some office activity, but new hospitality and mixed-use projects show investors remain confident in the city’s future.

Local leaders point to more than $200 million in recent transactions as proof of continued reinvestment. Overall, New Orleans’ commercial real estate market reflects a city in transition, but one still defined by resilience, creativity, and opportunity.

New Orleans Regional Context

Nearly two decades after Hurricane Katrina, New Orleans continues its long path of renewal. The city has faced setbacks, from natural disasters to the pandemic, but its commitment to rebuilding remains strong. Growth has been gradual, driven by local reinvestment and a renewed focus on livability. New Orleans still attracts people who value its culture, history, and sense of community, while nearby parishes continue to expand.

More than 962,000 people live within the New Orleans-Metairie metropolitan area, with nearly 365,000 within New Orleans city limits.
According to data from the United States Census Bureau, the most populous parishes are Jefferson, Orleans, and St. Tammany.
The per capita income is $42,396 (about 10% higher than the overall figure for Louisiana), and the median household income is $55,580.
The median age in New Orleans is 39.5, which is comparable with the figure of Louisiana overall.
The cost of living in New Orleans is about 12% higher than the national average, though certain expenses - such as utilities and groceries - are more affordable than elsewhere.

Pedestrians walk down a street lined with shops in downtown New Orleans

New Orleans Job Market

The New Orleans economy is finding its rhythm again, powered by both tradition and innovation. Energy, maritime trade, and logistics remain cornerstones of the region, but new investment in technology, life sciences, and manufacturing is adding momentum.

The state continues to make it easier for businesses to grow here, offering incentives like the High Impact Jobs Program, which rewards companies for creating well-paying local jobs. These efforts, combined with a skilled workforce and a growing network of universities, have helped attract employers across industries. Step by step, the metro area is building a stronger, more diverse economy for the long run.

Total Gross Domestic Product for the New Orleans-Metairie MSA is nearly $80 billion, growing by almost 10% since 2020, according to data from the Federal Reserve Bank of St. Louis.
The unemployment rate is 4.4% (BLS August 2025), a steady improvement from the middle of the year.
Key industries in New Orleans include aerospace and defense, agribusiness, energy, life sciences, logistics, professional services, and technology.
Naval Air Station Joint Reserve Base New Orleans in Belle Chasse and the Louisiana National Guard Barracks in the Ninth Ward help support the local economy.
The largest public employers in Greater New Orleans are the City of New Orleans, Jefferson Parish Government, NASA, the United States Army Corps of Engineers, the United States Marine Corps, and the United States Navy.
Major private employers in the metro area include Accenture, Boeing, Chevron, Dow Chemical Company, GE, International Paper, Lockheed Martin, Phillips66, Port of New Orleans, and PricewaterhouseCoopers.
Aclara Resources recently announced a plan to invest $277 million in a heavy rare earth separation facility in the area - the first of its kind in the nation.
Leaders in the tourism industry appear to be optimistic about the city’s future, as a number of prominent hotels in New Orleans undergo major renovations.
New Orleans is home to several prominent universities and colleges, including Tulane University, Loyola University New Orleans, and the University of New Orleans.
About 45% of New Orleans residents hold a bachelor’s degree or higher, which is more than 1.5 times the rate in Louisiana overall.
The New Orleans region has an extensive transportation infrastructure, including major interstates I-10 and I-610, the Port of New Orleans, and Louis Armstrong New Orleans International Airport (MSY).

A historic, teal-colored building in New Orleans' French Quarter

New Orleans Industrial Market

New Orleans’ industrial sector remains steady, even as demand has cooled compared to national trends. Vacancy rates are low, and rents have continued to rise, showing that well-located properties near the port and major highways still attract tenants. While absorption has slowed, the market’s solid fundamentals and limited new supply help keep conditions balanced.

Market overview (NAR Commercial Metro Market Reports Q1 2025)

Inventory: 84,555,022 SF
Vacancy rate: 3.9%
Deliveries: 193,483 SF (12-month)
Net absorption: -149,040 SF (12-month)

Crexi Insights

These are the most recent New Orleans industrial lease and sales trends from Crexi Insights (as of October 2025):

For Lease (active)

Asking rate/SqFt (median): $8 per year
Median SqFt/listing: 11,000
Days on market: 147
Total listings on Crexi: 52 spaces

For Sale (active)

Median asking price: $1.6 million
Price/SqFt: $77
Asking cap rate: 7%
Days on market: 224
Total listings on Crexi: 24

Sales Comps (past 12 months)

Median sold price: $100,000
Sold price/SqFt: $26
Total sales volume: $12.6 million
Median SqFt sold/transaction: 3,558
Total SqFt sold: 227,200
Days on market (median): 440

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A pink-painted hotel in New Orleans' French Quarter

New Orleans Office Market

New Orleans’ office market is holding firm in a challenging national environment. Demand is softer than in past years, but vacancy remains below the U.S. average, and absorption has stayed positive so far in 2025. With no new projects under construction, limited supply is helping to keep the market relatively stable as tenants adjust their space needs.

Market overview (Cushman & Wakefield U.S. Office Reports Q3 2025)

Inventory: 28,899,128 SF
Vacancy rate: 8.6%
Net absorption: 158,505 SF (YTD)
Deliveries: 0 SF
Under construction: 0 SF

Crexi Insights

If you're in search of the freshest data on the New Orleans office market, turn to Crexi Insights as your first choice. The platform provides up-to-date data on the city's commercial real estate market, including lease trends, sale listings, and comparables.

Here are the latest stats and trends as of October 2025:

For Lease (active)

Asking rate/SqFt (median): $20 per year
Median SqFt/listing: 2,169 SF
Days on market: 412
Total listings on Crexi: 475 spaces

For Sale (active)

Median asking price: $1.3 million
Price/SqFt: $209
Asking cap rate: 0%
Days on market: 212
Total listings on Crexi: 88

Sales Comps (past 12 months)

Median sold price: $587,500
Sold price/SqFt: $187
Total sales volume: $7.8 million
Median SqFt sold/transaction: 4,108 SF
Total SqFt sold: 43,800
Days on market (median): 651

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A street band plays in New Orleans' French Quarter during the day, as pedestrians walk by

New Orleans Retail Market

New Orleans’ retail sector is gaining fresh momentum with projects like two new Trader Joe’s stores in Mid-City and Uptown and the large-scale revitalization of Clearview Mall in Metairie. Construction work in areas such as Decatur Street is causing temporary challenges but reflects ongoing investment in the city’s core. Even with slower absorption, vacancy remains below the national average, and rents continue to edge higher as demand stays steady.

Market overview (Cushman & Wakefield U.S. Shopping Center Reports Q3 2025)

Inventory: 22,754,114 SF
Vacancy rate: 6.2%
Under construction: 0 SF
Deliveries: 0 SF (YTD)
Net absorption: -96,679 SF

Crexi Insights

New Orleans retail lease and sales trends from Crexi Insights (as of October 2025):

For Lease (active)

Asking rate/SqFt (median): $21 per year
Median SqFt/listing: 2,097 SF
Days on market: 185
Total listings on Crexi: 310 spaces

For Sale (active)

Median asking price: $1.4 million
Price/SqFt: $271
Asking cap rate: 7.1%
Days on market: 184
Total listings on Crexi: 109

Sales Comps (past 12 months)

Median sold price: $609,500
Sold price/SqFt: $126
Total sales volume: $33.7 million
Sold cap rate: 7.1%
Median SqFt sold/transaction: 3,167 SF
Days on market (median): 554

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The New Orleans cityscape with multifamily buildings in the foreground and the Mississippi River in the background

New Orleans Multifamily Market

New Orleans’ multifamily market has slowed but remains stable overall. Demand has softened compared to national trends, yet average rents have continued to rise and new construction remains modest. With limited new deliveries and a manageable vacancy rate, most submarkets are consistent as renters adjust to higher costs and shifting economic conditions.