Q1 2026
DowntownNewOrleans MarketSnapshot
KeyTakeaways
RESIDENTIAL MARKET HOLDS STEADY
Residential inventory remained stable at 6,370 units, with only modest movement in vacancy and rents, indicating a largely stable multifamily environment.
OFFICE INVESTMENT SIGNALS STRENGTH
Downtown office fundamentals remained stable in Q1, with total vacancy holding near 12% and Class A vacancy declining to 18.4%. Highlights include new ownership for Class A buildings, One Canal Place and 400 Poydras, showing confidence from both local and national investors.
INNOVATION ECONOMY SUPPORTS OFFICE DEMAND
Saronic and Outlier added to Downtown's innovation story, reinforcing the district's role as a landing place for high-growth firms, founders, and entrepreneurial activity.
RETAIL MARKET REPOSITIONING
Retail inventory held steady at 5.3M square feet as vacancy rose and asking rents adjusted downward, creating near-term softness but also positioning Downtown to attract new tenants along active corridors and in ground-floor spaces.
VISITATION GROWS DOWNTOWN
Downtown visitation increased by 3.6% year-over-year to 11.3M visits, signaling continued activity across the visitor economy.
$650M DEVELOPMENT PIPELINE
Downtown recorded 31 active projects totaling $650M across construction and entitlement stages, underscoring sustained long-term investment across asset classes.
Office
OFFICE MARKET CONDITIONS
HIGHLIGHTS
Office fundamentals remained steady in Q1, with total vacancy nearly flat at 12.1% and Class A vacancy improving to 18.4%.
Six office leases totaling approximately 62,000 square feet were signed, reflecting continued leasing activity across Downtown assets.
One Canal Place and 400 Poydras both traded to new ownership, while Baker
Donelson's long-term lease reinforced confidence in Class A office product. 2 2
Retail
RETAIL MARKET CONDITIONS
HIGHLIGHTS
Retail inventory remained stable at 5.3M square feet, while vacancy increased to 6.69% and average asking rent declined 9.3%.
Three retail leases totaling approximately 7,000 square feet were signed in Q1, indicating continued tenant movement despite softer market conditions.
Redevelopment of major Downtown assets continues to support the long-term environment for street-level retail, food and beverage, and service concepts.
ACTIVE DEVELOPMENTS
NEW OPENINGS
Hotel+Tourism
HOTEL MARKET CONDITIONS
HIGHLIGHTS
Downtown recorded 11.3M visits in Q1, a 3.6% year-over-year increase that signals continued activity across the visitor economy.
Hotel performance softened year-over-year from elevated Q1 2025 levels, with ADR down 18.7% and RevPAR down 21.7% as the market normalized.
Element New Orleans Downtown opened in the CBD, adding 216 extended-stay guestrooms to the Downtown hospitality inventory.
The AC Hotel groundbreaking, proposed Smoothie King Center upgrades, and two property sales reinforce continued investment in hospitality and event-related infrastructure.
Multifamily
MULTIFAMILY MARKET CONDITIONS
HIGHLIGHTS
Residential inventory remained stable at 6,370 units, with no major Q1 shift in Downtown multifamily supply.
Average residential vacancy edged up 0.1 percentage points to 9.0%, while average rent per unit declined slightly to $1,935.
Average price per unit for sale declined 1.7% quarter-over-quarter, moving from $174,000 to $171,000.
ACTIVE DEVELOPMENTS
Tech+Innovation
3 1 1 5
HIGHLIGHTS
Saronic's 15,000-square-foot lease at Place St. Charles provides a concrete office-market signal for Downtown's growing innovation economy.
Outlier expanded its Downtown presence following a major funding win, adding another high-growth technology story to the district.
New Orleans Entrepreneur Week and 3rd Coast Venture Summit reinforced Downtown's role as the region's convening center for founders, investors, and startup activity.
Sources: CoStar, Placer.ai, City of New Orleans Department of Safety & Permits
Data presented may vary from previously reported figures due to ongoing enhancements within the Placer.ai and CoStar platforms.
