DowntownNewOrleans MarketSnapshot
KeyTakeaways
OFFICE MARKET STABILIZING
Downtown office fundamentals continue to stabilize, with declining vacancy and rising Class A rents signaling selective tenant demand.
HOSPITALITY NORMALIZING
Hospitality metrics softened year-over-year as the market normalizes from 2024 peak, though visitation remains above two-year levels.
INNOVATION DRIVING GROWTH
Tech and Innovation continue to be major drivers of long-term investment demand with new research pipelines and institutional projects.
RETAIL MOMENTUM CONTINUES
RESIDENTIAL DEMAND HOLDING
$690M INVESTMENT PIPELINE
Retail leasing remains active, driven by experiential concepts and chef-led operators, reinforcing Downtown’s role as a destination district.
Residential vacancy declined and quarterly absorption turned positive, indicating steady renter demand despite modest rent adjustments.
Over 30 projects totaling more than $690M across construction and entitlement stages underscore sustained long-term investment in Downtown.
Office
OFFICE MARKET CONDITIONS
HIGHLIGHTS
Vacancy declined to 12.0% overall and 18.8% in Class A, while asking rents rose 1.5% overall and 2.2% in Class A, signaling continued positive momentum in the office market.
Leasing activity remained steady with nine leases executed in Q4 2025 across four properties, including both new tenant commitments and renewals.
NOLA Education acquired 639 Julia Street as the future home of its National Training Center, helping to reinvigorate this important corner of Downtown. 2 1 0 3
Retail
RETAIL MARKET CONDITIONS
HIGHLIGHTS
Retail vacancy improved to 5.5%, reinforcing sustained tenant demand in prime corridors.
Four new retail leases were executed this quarter, highlighted by the 7,400-squarefoot corner space at Carondelet and Gravier, set to become a new concept from acclaimed chef Isaac Toups.
ACTIVE DEVELOPMENTS
NEW OPENINGS
Kira – 601 Tchoupitoulas
Taquerias Carnalito – 930 Poydras
Burlington Coats – Riverwalk
Secure the Bags – 216 Baronne
Hotel+Tourism
HOTEL MARKET CONDITIONS
HIGHLIGHTS
Downtown saw 10.7M visits, down 8.8% year-over-year but up 2.8% compared to two years ago, signaling short-term softening amid modest longer-term growth.
Local investor group led by Bobby Guidry acquired Le Pavillon Hotel, signaling continued confidence in long-term traction of the hospitality market.
The Orleans Parish School Board completed the sale of the L.E. Rabouin Memorial School building to a developer for redevelopment into hospitality use.
ACTIVE DEVELOPMENTS
4 5 8 17
VISITATION
10.7 Visits
(-8.8% YoY, +2.8% Yo2Y) MILLION
Multifamily
MULTIFAMILY MARKET CONDITIONS
HIGHLIGHTS
The multifamily market returned to positive absorption in Q4 with 12 units absorbed, as vacancy declined to 8.5%.
The 10-unit residential property at 353 Baronne Street sold for $3.46M. ACTIVE
DEVELOPMENTS
Tech+Innovation
ACTIVE DEVELOPMENTS (INSTITUTIONAL)
1 5
HIGHLIGHTS
Continued research funding and institutional expansion support long-term demand for office, lab, and mixed-use development in Downtown.
Louisiana State University Health Sciences Center secured $14M in research funding.
Xavier-Ochsner College of Medicine achieved candidate status from the Liaison Committee on Medical Education (LCME).
Tulane Ventures invested in Beken Bio, bringing the company back home to locate at the New Orleans Bioinnovation Center.
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.