Q2 2026
DowntownNewOrleans MarketSnapshot
KeyTakeaways
RESIDENTIAL MARKET HOLDS STEADY
Residential fundamentals remained resilient, as average rents increased 1.9% while vacancy held steady at 9.3%, reflecting continued demand for Downtown living.
OFFICE INVESTMENT REMAINS STABLE
The office market remained stable, with overall vacancy holding at 12.1% and approximately 42,000 square feet of new leasing activity completed during the quarter.
MAJOR INVESTMENTS FOR THE INNOVATION ECONOMY
Major institutional and private investment continued, highlighted by Tulane University's announcement of the former Charity Hospital redevelopment, the opening of The Shop SOMA, and continued expansion by technology firms.
RETAIL MARKET REPOSITIONING
Retail market conditions softened modestly, with vacancy increasing to 7.9%.
VISITATION GROWS DOWNTOWN
Downtown visitation continued to accelerate, reaching 9.8 million visits in Q2, a 5.6% year-over-year increase, supporting continued momentum for the tourism and hospitality economy.
$1.1B DEVELOPMENT PIPELINE
Downtown's development pipeline remained strong, with 26 active projects representing approximately $1.1 billion in investment across construction, entitlement, and planning.
Office
OFFICE MARKET CONDITIONS
HIGHLIGHTS
Total vacancy held at 12.1%, indicating that broader office market conditions remained stable during Q2.
Class A vacancy rose to 19.2% as asking rents declined, suggesting continued competition for tenants in higher-end space.
Nine office leases totaling approximtaltey 42,000 square feet were signed, reflecting continued leasing activity across Downtown assets.
Long vacant small office building at 314 South Rampart purchased and permitted for renovation into office use.
Retail
RETAIL MARKET CONDITIONS
HIGHLIGHTS
Retail vacancy increased to 7.9%, indicating softer occupancy conditions during Q2.
1 new retail lease signed for 2,000 square feet.
Average asking rent rose 3.5% to $24.75 per square foot despite higher vacancy, suggesting the available-space mix continues to support pricing. .
ACTIVE DEVELOPMENTS
NEW OPENINGS
Hotel+Tourism
HOTEL MARKET CONDITIONS
HIGHLIGHTS
Downtown recorded 9.8M visits in Q2, a 5.6% YoY increase, signaling increased positive momentum for tourism and hospitality Downtown.
RevPAR increased 4.8% year-over-year, representing the strongest improvement among the major hotel performance metrics.
ADR increased 3.2% while occupancy edged up 0.3 percentage points, indicating that rate growth was supported by stable demand.
Two new hospitality real estate projects completed -- new 6-room hotel at 329 North Diamond and 9-room hotel at 300 Magazine Street.
Multifamily
MULTIFAMILY MARKET CONDITIONS
HIGHLIGHTS
Average rents increased 1.9% to $1,966 while vacancy held at 9.3%, indicating stable occupancy alongside modest rent growth.
22 residential units came online with the completion of projects at 955 Howard Avenue, 815 Howard Avenue, and 517 Gravier Street.
Vacancy rate remained stable QoQ, unchanged at 9.3%.
ACTIVE DEVELOPMENTS
Tech+Innovation
ACTIVE DEVELOPMENTS (INSTITUTIONAL)
3 1 1 5
HIGHLIGHTS
Tulane University announced a major milestone in the redevelopment of the former Charity Hospital building, transitioning from tenant to owner and lead developer of the project.
The Domain Companies cut the ribbon on Downtown's newest coworking space - The Shop SOMA - demonstrating a growing need for flexible office space in the Downtown market.
Tech firm TrayAway opened up a new expanded office within The Shop SOMA, showcasing the importance of entrepreneurship activity for the future of the office market.
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.
