New Orleans, LA - Office Market Overview
The New Orleans Metropolitan Area includes the French Quarter, Lake Terrace & Oaks, and Milan office space submarkets. With a metropolitan population of nearly 1.3 million people, New Orleans is well known for its French Quarter, Bourbon Street, and world famous Mardis Gras celebration. Located along the Mississippi River, New Orleans is a major shipping and maritime transportation hub.
As of mid-2017, the New Orleans office market encompasses nearly 15 million square feet of existing office space in properties larger than 50,000 square feet. The commercial real estate market in New Orleans is heavily driven by the transportation, energy, aerospace, and tourism industries.
New Orleans, LA - Office Inventory Description
A diverse mix of business and industry of all sizes propels the economy in New Orleans, creating consistent demand for Class A office space in the metro area. With a gross metropolitan product of $74 billion annually, job creation remains strong and unemployment stays low. There are just under 100 office buildings with over 50,000 square feet of space in New Orleans, bringing almost 21 million square feet of office inventory to the market.
One of the office submarkets in New Orleans that sees consistently strong demand from both tenants and investors alike is West Lake Forest. Located along the I-10 in the northeastern part of the city, the area is home to investment-quality office buildings such as the MCENO building on Read Boulevard, 6600 Plaza Drive, and the 5650 Read Blvd Renovation.
New Orleans, LA Commercial Inventory Breakdown
Total: 15,433,328 SF
By square footage range:
- 50k to 100k SF: 1,264,143 SF / 8.19% of total office
- 100k to 500k SF: 5,017,029 SF / 32.51% of total office
- 500k to 1M SF: 6,414,944 SF / 41.57% of total office
- > 1M SF: 2,737,212 SF / 17.74% of total office
- Class A: 10,284,876 SF / 66.64% of total office
- Class B: 4,687,889 SF / 30.38% of total office
- Class C: 57,109 SF / 0.37% of total office
New Orleans, LA - Green Office Space
Whether or not a building offers energy-efficient, green office space is playing an increasingly larger role in where tenants decide to lease. Across the country, developers and investors have been meeting this demand. The 2017 National Green Building Adoption Index surveyed the top 30 office markets in the U.S. and discovered that the percentage of large office buildings - those with over 50,000 square feet of space - that are green, EPA Energy Star-rated, or LEED-certified has increased by about 33% over the last 12 years.
A prime example of a LEED certified office building in New Orleans is One Shell Square. This property was built in 1972, is located in the New Orleans Central Business District, and contains over 1.7 million square feet of Class A office space. The building was awarded a LEED Silver certification. In New Orleans, about 8% of the total larger office buildings are green, bringing over 2.8 million square feet of green office space in New Orleans to the market.
New Orleans, LA's Top Office-Using Sectors
The New Orleans commercial real estate market is heavily influenced by the energy and refining industries. These, along with financial services, aerospace & defense, and head corporate offices are among some of the top office-using sectors in New Orleans.
- Energy – Exxon, Chevron, BP, Shell, Calumet, Conoco, Koch, and Kinder Morgan are just a few companies in this sector that generate demand for white collar office employment in New Orleans.
- Financial Services – Capital One, Whitney National Bank, and GE Capital are just three users in this business sector of Class A office space in the metro area.
- Aerospace & Defense – NASA, the U.S. Navy Space and Naval Warfare Systems Command, and Lockheed Martin are all located in New Orleans.
- Corporate Office – White-collar office space is absorbed by large corporate users such as IBM, Imperial Trading, Al Copeland Investments, Vinson Guard Services, and United States Services Group.
New Orleans Demographics
- Total Population388,182
- Male Population(47.7 %) 185,063
- Female Population(52.3 %) 203,119
- Median Age35.90
- Average Household Income$67,224
- Median Household Income$38,721
- Median Income Under 25$17,914
- Median Income 25-44$42,097
- Median Income 45-64$42,213
- Median Income Over 65$30,590
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