The 2022 Greater New Orleans Annual Office Market Report is now available. This report is produced each year by the team of office brokers at Corporate Realty. It is intended to give a broad overview of the Greater New Orleans office market and specific building information. It also includes narratives about the market as well as specific information about occupancy and rental rates for each office building that contains at least 20,000 rentable square feet (rsf). This year we are including an overview of the Baton Rouge office market as presented by Branon W. Pesnell, CCIM, SIOR, and the director of our Baton Rouge market.
A few trends have become more clearly defined in this post-COVID office market. These include the redevelopment/renovation of office space as usage of such office space changes, pressure on rental rates due to the rising costs of operating and construction expenses, and more flexible lease terms. The office leasing market has remained stable: Although remote work remains to some degree, employers find their teams are more productive working in office environments and so the employers are more interested in finding new, more flexible ways to use their office environments. While there have been no new office towers in the Greater New Orleans market since the 1980s, we are seeing landlords invest in improvements to help make their buildings more attractive. We are also seeing more spec suites (turn-key office spaces) being built to more efficiently attract tenants. To keep up with the high operating expenses and construction costs, however, the decade-long static rental rates in the New Orleans market will need to increase.
“Corporate Realty is pleased to provide this Annual Office Market Report to the community. While the office market, and our community, are facing some difficult issues, we remain confident and bullish on the resilience of our community and the long-term strength of our office market,” said Michael J. Siegel, SIOR, President of Corporate Realty.
In addition to the annual office market report, Corporate Realty publishes quarterly office market reports compiled by leasing director Bruce Sossaman, SIOR. All reports are complimentary: please visit corp-realty.com/reports.