The New Orleans Commercial Real Estate Market

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New Orleans has experienced radical growth and recovery in the last decade and represents a healthy market to invest in commercial real estate. As one of the South’s fastest-growing economies and logistical centers, New Orleans attracts investors and national tenants to its plentiful development and rising population. 

Crexi connects parties interested in New Orleans commercial real estate to hundreds of viable properties and the tools needed to research, analyze, and acquire the perfect fit. 

Brokers in New Orleans and those representing New Orleans property for sale also rely on Crexi to manage leads, list assets, and navigate more deals to closing, all while saving time. As of this writing, Crexi’s commercial real estate tools have assisted brokers in closing more than $300 billion in commercial property value and marketing over $1.2 trillion in overall assets.

Crexi proudly supports New Orleans, Metairie, Kenner, Laplace, Slidell, and the surrounding areas as the market’s fastest-growing online CRE platform.

The State of New Orleans Commercial Real Estate 

New Orleans is located at the mouth of the Mississippi River in southern Louisiana, a midpoint between Houston and Tallahassee, Florida. The city serves as a logistical hub for the country and is home to a world-class port system, integrated multimodal transportation infrastructure, and a skilled workforce.

Home to nearly 1.3 million people in the metropolitan area, the economy of the New Orleans region is driven by the leisure and hospitality, energy, supply chain logistics, and manufacturing industries. Over the last several years, the city has proven to be one of the most attractive metro areas for relocation, due in part to the strong, well-educated workforce.

Of course, there’s more to New Orleans than just business. The city boasts some of the best music, art, and food globally and is home to the famous French Quarter and Mardi Gras. Each year the city hosts the Sugar Bowl and the New Orleans Bowl and is proud to have the NFL New Orleans Saints and the NBA New Orleans Pelicans among its pro sports teams.

New Orleans Regional Breakdown

The State of Louisiana is seeing people move to the cities and suburbs across the southern part of the state, helping the population of New Orleans to grow slowly but surely. Orleans Parish – one of the seven parishes that make up the New Orleans region – has seen steady population growth over the past decade:

  • New Orleans is home to nearly 400,000 residents, with almost 1.3 million people living in the New Orleans-Metairie metropolitan area.
  • The population of New Orleans has grown by 12% over the past decade.
  • The city of New Orleans is the most populous in Louisiana and is the economic and commercial hub of the Gulf Coast region.
  • New Orleans MSA includes eight parishes: Jefferson, Orleans, Plaquemine, St. Bernard, St. Charles, St. James, St. John the Baptist, and St. Tammany.
  • The largest cities in metropolitan New Orleans include Kenner, Metairie, Estelle, and Harvey.
  • Median household income in New Orleans is $55,710, and per capita income is $31,889
  • The median age in New Orleans is 39, about the same figure as in the US.

New Orleans Job Market

As with many other cities around the country, there are more job openings in New Orleans than takers, creating a sense that employers are willing to offer more pay and benefits to find workers. The recent average hourly wage in New Orleans is about 11% below the national average, with employment concentrated around five occupational grounds, including food preparation and service-related, healthcare, and protective services:

  • The GDP of New Orleans-Metairie MSA is nearly $83.6 billion and has grown by 19% over the past decade.
  • Employment growth in the New Orleans metro area was 3.35% before the pandemic, with median household incomes growing by nearly 11%.
  • The unemployment rate in the New Orleans MSA is 7.6%, according to the US Bureau of Labor Statistics (July 2021).
  • Employment sectors in New Orleans showing the strongest signs of growth include leisure and hospitality, information, professional and business services, and trade and transportation.
  • Key industries in Greater New Orleans include technology, advanced manufacturing, trade and logistics, health sciences, environmental management, energy, and offshore wind.
  • Major private employers in metropolitan New Orleans include AT&T, IBM, McDermott International, Lockheed Martin, Harrah’s Entertainment, Capital One, GE Capital, and Popeyes Chicken & Biscuits.
  • Major universities and colleges in and around New Orleans are Tulane University, Loyola University New Orleans, the University of New Orleans, Louisiana State University Health Sciences Center, and the University of Holy Cross.
  • Over 88% of the residents of New Orleans have a high school degree or higher, while more than 32% hold a bachelor’s degree or an advanced degree.
  • New Orleans has the second-largest amount of infrastructure investment and is home to one of the fastest-growing airports in the country.
  • Transportation infrastructure in the New Orleans region includes four deep draft ports, six Class I railroads, and access to several major Interstate Highways providing easy access to the Midwest and the Southwest United States.

New Orleans Industrial Market

The New Orleans industrial market remains strong, as investors and businesses benefit from the city’s strategic location. Located along the mouth of the Mississippi River, New Orleans is home to the largest inland port by tonnage in the western hemisphere, has access to six Class I railroads, and lies along Interstate 10, a main traffic artery between Atlanta and Houston:

  • Total industrial inventory: 81,401,137 SF
  • Average asking rent: $7.70 per SF per year, net
  • Vacancy rate: 3.9%
  • Absorption: 201,663 SF (Q2 2021)
  • New construction: 5,000 SF delivered over the past 12 months with 154,200 SF under construction
  • Cap rates: 8.50%
  • Sales price: $33 per SF

Discover New Orleans industrial space for rent.

New Orleans Office Market

The New Orleans office market has remained relatively stable throughout the pandemic. Although there has been relatively little new leasing activity, occupancy rates for Class A office space in the New Orleans Central Business District remained level, while rental rates slightly decreased. Non-Class A office occupancy levels and rent prices remained about the same, with local real estate experts cautiously optimistic about the demand for office space in New Orleans in 2021:

  • Total office inventory: 26,377,385 SF
  • Average asking rents: $18.68 per SF per year, full-service gross
  • Vacancy rate: 11.9%
  • Absorption: -498,632 SF (Q2 2021)
  • Leasing activity: 231,148 SF new leases signed YTD
  • New construction: 0 SF delivered to market YTD with 0 SF under construction
  • Cap rates: Class A CBD 8.50%, Class A Suburban 9.00%, Class B CBD 9.00%, Class B Suburban 9.50%

Discover New Orleans office space for lease. 

New Orleans Retail Market

As the city begins to loosen its pandemic restrictions, the retail market in New Orleans is beginning to rebound. For example, bars and restaurants have begun to reopen with longer hours, and the Clearview City Center project – a mixed-use project with over one million square feet of residential, office, retail, and hotel space – is regaining momentum:

  • Total retail inventory: 85,530,073 SF
  • Average asking rent: $19.30 per SF per year, NNN
  • Vacancy rate: 3.7%
  • Net absorption: 505,498 SF (Q2 2021)
  • New construction: 47,058 SF delivered (over past 12 months) with 38,111 SF under construction
  • Cap rates: Community retail 7.50%, Neighborhood retail 8.00%

Discover New Orleans retail property for lease.

New Orleans Multifamily Market

Rising home prices are driving the demand for apartment units in New Orleans, as residents seek an alternative to the high cost of homeownership. Limited new construction is expected over the next few years, with rents predicted to grow gradually and vacancy levels projected to decline:

  • Total housing units: 561,747
  • Renter occupied: 53%
  • Total multifamily units: 67,564
  • Asking rent: $1,109 per month
  • Vacancy rate: 7.2%
  • Average cap rate: Urban Class A 6.00% – Suburban Class B 7.00%
  • Median sales price per unit: $139,926 (Q2 2021)
  • New construction: 470 units delivered over the past 12 months, with 439 units currently under construction
  • Popular multifamily neighborhoods: New Orleans Central Business District, Central City New Orleans, Lower Garden
  • Median household income: $55,710
  • Per capita income: $31,889

Discover New Orleans multifamily property for sale.

How Crexi Connects Buyers and Tenants to New Orleans Commercial Real Estate

Buyers, principals, and businesses searching for New Orleans commercial properties can deftly browse through hundreds of available assets using Crexi’s robust and intuitive search functionality. 

Those seeking properties in New Orleans can navigate through hundreds of properties along dozens of search variables. Using Crexi’s tools, buyers and tenants can narrow searches by price or rate per square foot, cap rate, square footage, neighborhood, asset type and subtype, vacancy, and other parameters.

Interested parties can easily connect with the listing broker to learn more and begin acquisition conversations upon finding the perfect property. Crexi users can freely download PDFs, request more information, and even submit a letter of intent (LOI) directly on the property’s page.

Intelligence Equips Investors with Data and Market Knowledge 

Data and research are essential tools for making informed property investment decisions, and Crexi Intelligence seeks to simplify the research process at every step. Intelligence equips property seekers with a database of up-to-date and highly relevant market information in convenient places, allowing them to analyze potential property investments.

Intelligence features a robust database of millions of property records and sales comparables, supplemented by more than 50 in-depth MSA market reports. Intelligence also equips buyers and tenants with an Insights tab on every page, filling out relevant data concerning real-time New Orleans market information such as average square footage, demographic data, traffic insights, and much more.

Intelligence is available to buyers, sellers, and tenants on a subscription basis.

How New Orleans Brokers Thrive with Crexi

Brokers in New Orleans harness Crexi to list more than 700 properties for sale and for lease within the city limits. With plentiful ongoing development and steady population growth, brokers in New Orleans list their assets on Crexi to a national database of potential buyers interested in entering the region.

Commercial agents in New Orleans also harness Crexi’s robust broker tools to quickly manage leads, access real-time lead insights, and amplify their marketing process to immediately reach the broadest, most relevant audience pool possible. 

New Orleans commercial brokers use Crexi to represent assets across different sectors, including: 

  • Land parcels
  • Industrial buildings
  • Multifamily developments
  • Retail properties
  • Offices units
  • Mixed-Use buildings
  • Hospitality assets
  • Non-traditional properties such as data centers, self-storage, etc.

With Crexi’s broker tools, New Orleans brokers can easily navigate their clients’ properties from list to close in one convenient platform. Brokers can even store and manage due diligence paperwork and closing documents online using Crexi’s secure file storage.

All these tools are free for brokers, but the real power of Crexi unveils itself with Sale PRO, Lease PRO, and All PRO

Crexi PRO Dashboard 2020

Crexi’s All PRO Membership

Crexi PRO elevates broker workflows with advanced functionality designed to build out pipelines and close more deals. New Orleans brokers can access highly detailed lead and contact information and generate branded lead reports in seconds, simplifying operational processes and allowing brokers to prioritize connections and doing what they do best: closing deals.

PRO also automates highly successful marketing processes for broker users. Listings with PRO receive preferential placement atop demand-curated search result pages, getting them seen by thousands of actively seeking leads. Crexi also sends out weekly email blasts to its user database, curating properties that earn 10-15% higher click-through engagement than industry benchmarks.

Crexi PRO users enjoy access to Intelligence’s full library and research tools at no added cost, equipping them with in-market knowledge to pass on to their clients.

With Crexi PRO, brokers can quickly and efficiently connect with more than 32,000 leads who have explored New Orleans property in the last two years, as well as the more than three million leads across the US who searched using Crexi in 2020.

On average, Crexi PRO users successfully attract 125% more leads and close up to eight times more deals than non-PRO subscribers. 

Contact support@crexi.com to learn more about All PRO.

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Shanti Ryle
Shanti Ryle

Content Marketing Manager

Shanti leads Crexi's content marketing strategies with 7+ years of content development experience, creating everything from blog posts to award-winning podcasts. Previously, she worked on content teams at Snapchat, Weedmaps, and HopSkipDrive as well as developed copy, articles, and media for freelance publications.

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