THE MARKET REPORT
Where work and culture meet what’s possible.
Letter from President & CEO
Dear Downtown stakeholders, Q1 2024 marked a significant period of creativity and innovation with signature Downtown events like New Orleans Entrepreneurship Week and the popular Wednesday at the Square concert series presented by YLC, as well as several weeks of Mardi Gras festivities. These events, beyond their entertainment value, are catalysts for economic development and community engagement playing a crucial role in fostering Downtown’s place as Louisiana’s creative and economic hub.
In alignment with our steadfast focus on promoting cleanliness and safety, DDD has spearheaded numerous campaigns and programs that are elevating the overall aesthetic and appeal of Downtown. This quarter, we were proud to announce the implementation of a new sidewalk cleaning and public space maintenance contract, as of January 1st. The new contract provides for enhanced cleaning on a 24/7 schedule and prioritizes key areas such as Canal Street and the surrounding "100 blocks." This initiative not only enhances the experience for residents and visitors but also stimulates interest from prospective retail establishments.
Looking ahead, we are excited to move forward on new projects that will enrich our urban landscape with vibrant parks and open spaces. A recent grant DDD received from the City of New Orleans to support an Open Space and Parks Activation Plan supports our dedication to maximizing the potential of underutilized areas and fostering community cohesion and well-being. Additionally, the forthcoming redesign of Harmony Circle, made possible through state capital outlay dollars, promises to redefine the internationally recognizable space as a hub for communal gathering and reflection.
Please read on to learn more about the exciting progress happening right here in Downtown New Orleans. Together, we will continue to build on our successes. Thank you all for your continued interest and support of a thriving Downtown New Orleans.
Davon Barbour President & CEOLetter from Mayor
Residents of New Orleans, I am excited to share with you updates on our amazing Downtown as we close the 1st Quarter of 2024. First, I wanted to reaffirm Downtown’s pivotal role as the heartbeat of our economic and cultural landscape. Under my administration, Downtown has remained a priority as a key job center and place of entertainment for visitors and locals alike.
This past quarter included three months of vibrant economic activity. Recent findings from a study commissioned by the Mardi Gras Advisory Council and New Orleans & Co. determined that Mardi Gras generates almost $900 million in direct economic impact to the city’s economy. The study also found that this number has grown by 300% since 2009. This number represents the hard work and dedication of our city’s most valuable asset – our people.
As we eagerly anticipate the monumental return of Super Bowl LIX on February 9, 2025, New Orleans is poised to demonstrate its unparalleled hospitality and vibrancy once again on a global stage. The economic ripple effect of this prestigious event will be substantial, and I am proud to continue the legacy of the Super Bowl Supplier Diversity Program, which aims to ensure that our local disadvantaged and minority-owned businesses reap the full benefits of this momentous occasion. New Orleans is also gearing up to show the world how far we have come 20 years after Katrina, our Downtown has been reimagined, revitalized and reenergized!
In closing, I extend my sincerest gratitude to each and every one of you for your steadfast support of Downtown and our beloved city.
Thank you, again, for supporting Downtown and our great city.
Sincerely,
LaToya CantrellDefining Downtown
The Downtown Development District of the City of New Orleans (DDD) was created by the Louisiana Legislature in 1974 as the nation’s first assessment-based business improvement district
9.2M Total SF of Class A Office Space
Downtown New Orleans stands as the largest center of employment in the State of Louisiana. Moreover, this collection of neighborhoods represents nearly $1B in property value.
26 Transit Routes
486 Retail Businesses
7 Coworking Spaces and 9 Incubators / Accelerators
115 Hotels and 22,399 Rooms
6,300 Condos / Apartments
Staff + Board
STAFF
Davon Barbour PRESIDENT & CEO
Bianka Brown
CHIEF FINANCIAL OFFICER
Ashley Mills
CHIEF MARKETING OFFICER
Ren é Pastorek, AICP
CHIEF ECONOMIC DEVELOPMENT OFFICER
Jared Brossett
DIRECTOR OF POLICY & EXTERNAL AFFAIRS
Donald G. Clouse
PUBLIC SAFETY MANAGER
John Roussell
PUBLIC SPACE OPERATIONS MANAGER
Esther Boone
MARKETING & COMMUNICATIONS SPECIALIST
Tyler Correa
ECONOMIC DEVELOPMENT SPECIALIST
Meaghan Nguyen
ECONOMIC DEVELOPMENT SPECIALIST
Lisa Mckee
HUMAN RESOURCES COORDINATOR
Dajuantae Riggins
STAFF ACCOUNTANT
Francia Barradas
CHIEF OF STAFF TO THE PRESIDENT & CEO
Tempestt E. Woods
ADMINISTRATIVE ASSISTANT
EXECUTIVE COMMITTEE
Gregory Curtis WINDSOR COURT HOTEL | CHAIR
Carla Major DELGADO COMMUNITY COLLEGE | VICE CHAIR
Chris R. Ross NAI/LATTER & BLUM, INC. | TREASURER
Kristi Taglauer HOTEL PROVINCIAL NEW ORLEANS | SECRETARY
COMMISSIONERS
Coleman Adler ADLER’S JEWELRY
William Bradshaw GREEN COAST ENTERPRISES
Damon Burns FINANCE NEW ORLEANS
Alex Glaser JONES WALKER
Leann O. Moses
CARVER, DARDEN, KORETZKY, TESSIER, FINN, BLOSSMAN & AREAUX, LLC
Edwin Murray LSU HEALTH NEW ORLEANS
By the Numbers
1.7 M
Unique visitors to the DDD during Carnival season (1/6/24 - 2/14/24)
38%
of Q1 visitors to Downtown traveled over 250 miles to get here.
5.1K
Peak Q1 Wednesday at the Square concert attendance (after NOEW)
18,400
1,624
# of hotel rooms in the development pipeline
95,771
Registered runners in the LCMC Health Crescent City Classic Square feet of retail projects under construction
The first quarter of 2024 illuminated New Orleans’ thriving Tech and Innovation ecosystem with the resounding success of The Idea Village’s New Orleans Entrepreneur Week (NOEW) and 3rd Coast Venture Summit , both of which drew global attention and acclaim. This, coupled with the unveiling of the BioDistrict strategic plan, underscored the city’s rapid ascent in the tech and innovation landscape.
For over a decade, NOEW has been the premiere event for entrepreneurs across the Gulf South, attracting participants from across the country and around the world. The 2024 event was headquartered at the iconic Gallier Hall (545 St Charles), with auxiliary venues showcasing expanded programming across the city. Attendees enjoyed a dynamic week-long experience, immersing themselves in an array of focused business content, panels, sessions, summits, pitches, networking, partner events, and more.
In its second year, the NOEW in Your Neighborhood series provided an outlet for more than a dozen partner-driven events. These events
put the spotlight on leading organizations across the city who hosted their own programming highlighting their impact on the local entrepreneurial ecosystem. DDD curated a panel discussion, “BioDistrict New Orleans: Cultivating a Life Sciences Innovation Ecosystem,” in partnership with the Greater New Orleans Foundation, BioDistrict New Orleans, New Orleans Bio Innovation Center (NOBIC), and the City of New Orleans Department of Economic Development.
The event featured panelists Andy Kopplin, President & CEO, Greater New Orleans Foundation and Chair, BioDistrict; Blake Stanfill , Founder, Okwata Group and Vice Chair, BioDistrict; Jeff Schwartz , Director of Economic Development, City of New Orleans; Kris Khalil , Executive Director, New Orleans BioInnovation Center; and Davon Barbour, President & CEO, Downtown Development District. Together, they discussed the creation of a new Strategic Plan for the New Orleans BioDistrict, took questions from audience members, and enjoyed an evening of networking and idea sharing at a post-panel reception.
The strategic plan – funded by the Greater New Orleans Foundation, City of New Orleans, and Downtown Development District and developed by HR&A Advisors – outlines long-term goals and recommendations to help transform the BioDistrict into a world-class innovation center.
103.6%
A recent report by Axios determined that New Orleans is one of America’s newest innovation hotspots due to an increase in utility patents granted per capita over the last 10 years, outperforming the U.S. average of 11%.
Its execution will be carried out through the collective efforts of the BioDistrict, its partners, and its stakeholders, like Tulane University, LSU Health Sciences Center, and major hospitals around the area . Ultimately, the aim is to catalyze private investment, grow the city’s biosciences and health innovation ecosystem, and create jobs and economic opportunities for the people of New Orleans.
The relatively new but rapidly expanding industry around artificial intelligence (AI) is also finding a home in Downtown New Orleans. NOLA AI , a dynamic AI
startup laboratory, engages its clients directly in the development of innovative projects that leverage the latest AI advancements for business improvement. They have established their headquarters at 840 Camp Street, and CEO / Co-founder Damon Kirin is dedicated to fostering the local tech ecosystem by hiring and retaining local talent to help further validate New Orleans as a tech-friendly city with high-quality talent. NOLA AI is just one of the many companies Downtown commercializing new ideas.
Retail Market
Downtown’s retail market conditions remained steady through the first quarter of the year, showing less than 1% change in key metrics like inventory, vacancy rate and market capitalization rate. The most significant change during the past quarter was a drop in average asking rent per square foot from $37.92 to $36.70, representing a 3.28% decrease. However, the current asking rent still represents an 11.21% increase over the Q1 2023 rent of $33.00 per square foot.
During the final quarter of 2023, Downtown saw five new retail space developments complete (32,122 square feet), four of which are already occupied (Ruby Slipper, IT’SUGAR, Cafe Fleur de Lis, and Lucy’s). Looking ahead, current permit applications with the New Orleans Department of Safety and Permits are summarized in the Active Developments Chart below. Notably, 19 of the 20 projects with planned retail space form part of larger mixed-use projects (e.g., lodging, office, residential).
DOWNTOWN BUSINESSES BY RETAIL TYPE
Source: City of New Orleans Department of Safety & Permits 81,282 6 13,010 4 44,572 9 138,864 19 Projects | SF
RETAIL MARKET CONDITIONS
SOURCE: COSTAR
Downtown New Orleans Retail Openings Q1 2024
Born from the undeniable spirit and soul of New Orleans, Ruby Slipper Cafe is a place that celebrates the craveable and creative flavor and spirit of breakfast and brunch front and center every day. The reopening of the restaurant’s Canal Street location following the devastating collapse of the Hard Rock Hotel construction site represents what co-founder Jennifer Weishaupt describes as “an investment in the heart of our beloved city, a contribution to the revitalization of Canal Street, and a symbol of resilience for the entire community.”
The Good Times Keep Rolling Downtown
In addition to being the largest employment center in Louisiana, Downtown also houses nearly 73% of the total hotel rooms in the City of New Orleans. Downtown is home to 115 hotels and 22,399 rooms for visitors to enjoy while exploring the heart of Crescent City. Current projects in development are expected to add another 1,624 rooms across 26 projects to the Downtown hotel inventory, increasing the DDD's hosting capacity by 7%.
This unique concentration of hotel rooms within the DDD’s 1.2 square miles of highly walkable space is a significant factor in why Downtown New Orleans is “built to host” Super Bowl LIX. Game attendees can stay, watch, and play for the weekend
— all within walking distance from the city’s top hotels, restaurants, and Caesars Superdome. Outside of the large, name brand hotels that dot Downtown’s skyline, DDD has also seen an increase in small, boutique hotels that provide a more intimate and curated experience. One such example is the Little Lagniappe Hotel located at 747 Saint Charles. This $3.9M renovation created seven multibedroom units meant for larger groups and extended stays. The property features a sizable pool and meticulously decorated rooms. Located next door to Little Lagniappe is Hotel Perle (757 St. Charles) that has a similar concept. This development will create eleven large-format suites, ranging from 1,400 to 1,800 square feet, and will feature a rooftop pool.
DID YOU KNOW THAT MARDI GRAS CELEBRATIONS IN NEW ORLEANS PRODUCE UP TO 2.5 MILLION POUNDS OF WASTE EACH YEAR?
DDD is excited to share the results of the partnership between French Quarter Management District, Vieux Carre Property Owners, Residents, &
HOTEL MARKET CONDITIONS
Associates (VCPORA), and Glass Half Full that made a sustainable impact this Mardi Gras season. With the help of our partner organizations, DDD was able to help collect and recycle beads and other throws at participating Downtown and French Quarter hotels between February 1st and February 18th.
The recycled items were then sent to ArcGNO— a local organization that provides employment opportunities to people with intellectual disabilities by sorting, packaging, and reselling Mardi Gras beads and throws.
Multifamily Market
Downtown Housing
Downtown New Orleans has much to offer those looking to make the cultural and commercial hub of Louisiana their home. The Downtown multifamily market remains stable despite the lack of significant changes in Q1 2024. A strong occupancy rate of 92.2% reflects the consistent demand for multifamily properties in the area.
For comparison, the ten-year high for residential occupancy was 96% (achieved in 2013 and 2019). Average rental rates have decreased slightly in the first three months of the year to $1,951; however, asking rents are still the highest in the metro area, due in part to the ample supply of luxury living units around Downtown.
The Downtown multifamily market is poised for growth, with multifamily permit applications projecting another 672 units. This represents a promising 9.6% increase in the current inventory. Notably, AJ Capital Partners is set to deliver 70 additional units later this year, further expanding the market.
MULTIFAMILY MARKET CONDITIONS
The 120k square foot project also includes a hotel component and a membership-based social club, Common House (420 Julia St), “complete with a restaurant and bar, open coworking space, rooftop pool, fitness center, courtyard, conference rooms, and more.” Once complete, the project will grow the Common House portfolio, which currently operates locations in Virginia and Tennessee, and provide new amenities for Downtown residents.
With respect to owner-occupied units, residential property remains a dependable investment. Data from the National Association of Realtors demonstrates an increase in Downtown residential properties being posted for sale. However, these homes are selling relatively quickly, within two months, indicating that there is still a strong demand for properties in this market. Additionally, sellers are receiving offers close to their asking price, with a List to Sold Price Percentage of 100.2%.
Office to Residential Conversion at the Former Hancock Whitney Bank
The owners of the half million square foot Whitney National Bank Building on St. Charles Avenue have provided plans to the New Orleans Department of Safety and Permits to convert a portion of the building complex to residential units. Wampold Properties, the current owner, possesses extensive experience in the multifamily, commercial, and hospitality sectors. Entitlement has only been sought for the residential concept, adding 240 residential units to the development pipeline.
Number of Residential Units in the Pipeline:
UNITS
1,000+ units delivered since 2019
The iconic clock that adorns the historic Whitney Banks Building, located at 228 St. Charles Ave.Resilience in the Face of Uncertainty
Office vacancy remains a top concern for downtowns across the United States and abroad as hybrid work patterns continue to remain prevalent, even years after the peak of the pandemic. Downtown New Orleans is not immune to this problem. However, it is faring much better than its peer cities, mostly due to restricted space for new stock and a plethora of law office leases that continue to prefer traditional, quality, Class A office space near local courts.
While total Downtown office vacancy rose slightly by .3% quarter-over-quarter to 12.4%, it sits nearly 7% below the national average (19.2%) and fares better than regional peers Memphis (16%), Birmingham (19.6%), and Atlanta (24.5%). Additionally, return to office (RTO) metrics for New Orleans currently demonstrate a 69% recovery compared to prepandemic levels. For comparison, workplace security company Kastle Systems recently reported that the average back to work occupancy rate across their top 10 office markets is just 48%.
Featured Relocation:
The DDD Economic Development Team met with leadership at NuQuest Energy in Q1 to discuss the company’s recent move to the Poydras Center (650 Poydras) in Downtown New Orleans. NuQuest Energy, LLC is a utility-scale renewable energy development company pursuing a plan to assemble a diverse portfolio of utility, industrial, and corporate solar and carbon sequestration projects across the United States and specifically within Louisiana, Texas, and Mississippi. Their business journey began in 2021 in a temporary office space in Metairie. After over two years of
In a bullish move by two Monroe real estate investors, brothers Eddie and Joseph Hakim purchased one of New Orleans’ most visible office buildings: the green granite high-rise at 1615 Poydras Street , which is currently named after its anchor tenant, DXC. The Hakims bought the 23-story building from its longtime owner, businessman, and philanthropist Frank Stewart, in January 2024.
This is the second Poydras Street high-rise purchased by the Hakims. In 2013, they bought the 20-story Orleans Tower, formerly the Amoco Building, for $16 million and breathed new life into the aging tower. Once purchased, the pair made much-needed renovations and raised its occupancy from about 45% to more than 80% today. In today’s office real estate environment, this purchase shows confidence in the Downtown market and its resilience in the changing workplace environment.
operation, the benefits of moving to a more central location became apparent. NuQuest Partner and Director of Land Alex Guitart noted that the major pull factor for this move was Downtown New Orleans — emphasizing his desire to bring the company closer to the amenities, convenience, and entertainment of the Central Business District. NuQuest’s space at the Poydras Center provides them with the opportunity to experience the ease and advantages of a Class A office building in the heart of Louisiana’s economic and cultural hub.
2023
Conditions Benchmarked Nationally
2023
Neighborhood Mobility
The City of New Orleans Department of Public Works (DPW) is currently tackling significant visual improvements to enhance both the aesthetics and function of Canal Street. Planned work includes refreshed roadway striping, crosswalks, and sidewalk improvements/ repairs.
Downtown Keeps Moving
Beginning the new year strong, Downtown enjoyed a shortened Carnival season which ran from January 6th until February 13th. During this time, approximately 360,000 visitors (36% of the total amount of visitors) came from over 250 miles away. Peak visitation was recorded on Feb 10th when 317.4k tourists, residents, and workers were present in Downtown. Overall, Mardi Gras brought over 1M unique visitors, residents, and employees to Downtown compared to the 985k who came during 2023 (1.4% increase YoY).
Downtown New Orleans Total Visitors, Workers, and Residents Counted
For the entire quarter, the average daily number of visits to Downtown has increased year over year, from 139,464 to 143,154. All major streets showed improvement in visitation over Q1 2024, with the most noteworthy growth (17%) occurring on Loyola Avenue. DDD has previously reported a similar YoY spike of 12% occurring in Q3 2023, demonstrating the significance of the corridor which is anchored by institutional entities such as City Hall and the Main Library Branch, as well as the State’s signature entertainment venues such as the New Orleans Superdome and Smoothie King Center.
DOWNTOWN NEW ORLEANS TOTAL VISITORS, WORKERS, AND RESIDENTS COUNTED
Tulane University's expanded Downtown campus will illuminate Downtown New Orleans each night with a newly installed 800-light LED system, enhancing safety and aesthetics in the public realm.
The new lighting system is one of many improvements in the ongoing redevelopment plans for the University’s Downtown Campus in the heart of New Orleans’ BioDistrict.
PEDESTRIAN COUNTS
Tulane is set to invest $600 million to grow and improve this campus in the upcoming years, a plan that includes the rebirth of the Charity Hospital building as a hub of bioscience research, innovation, and entrepreneurship. These efforts will have a $1 billion economic impact and create an estimated 2,300 jobs in New Orleans and across Louisiana.
SOURCE: PLACER.AI
Active Developments
Hotel 1050 Annunciation St 1050 Annunciation St Development Group LLC
Residential/ Retail 604 Baronne St 604 Baronne LLC
Hotel Caesars New Orleans Harrah's New Orleans LLC
Hotel 714 Canal Renovation 714 Canal LLC
Hotel The Mayfair Mohamed Halum
Retail/ Hotel/ Office 1010 Common Renovation Kalias Companies
Residential The Gravier Apartments Koobehi Properties LLC
Office Common House 420 Julia Property Holder LLC
Retail/ Hotel/ Residential Memoir Residential 420 Julia Property Holder LLC
Hotel/ Retail Hotel Perle Urban 757 LLC
Retail/ Hotel Vintage Rock Club/ CopperVine Expansion 1009 Poydras LLC
Retail/ Residential/ Office/ Hotel Charity Hospital 1532 Tulane Partners Inc
Hotel 222 Loyola Ave Plaza Realty LLC
Hotel/ Retail 833 Baronne St 833 Baronne St LLC
Hotel/ Retail 934 Canal St 1015 Canal LLC/934 Canal LLC
Hotel/ Retail NOLA AC Hotel Nola Lodging Group LLC
Hotel 739 Convention Center Blvd 739 Convention Center Blvd LLC
Hotel 516 Natchez St MURA, LLC
Hotel/ Retail Moxy Hotel D-Barlo LLC & John Campo, Jr
Hotel 1031 Annuciation St BCH Nola 1031 LLC
Hotel/ Retail 330 Baronne St Baronne Union Development LLC
Retail 744 Camp Renovations 748 Zen Associates LLC
Hotel / Retail 837 Camp St Excel Advertising Group LLC
Hotel 611 Commerce St 611-613 Commerce LLC
Retail/ Residential 827 Carondelet St 827 Carondelet LLC
Hotel Hotel Santa Maria Diamond Street Ventures LLC
Hotel The George Hotel WestCems Corp
Office/ Retail Sourthern Glazers Wine & Spirits Sourthern Glazers Wine & Spirits
Retail/ Residential 955 Howard Ave Vinson Properties#1 LLC
Retail Headquarters Restaurant GBX Group
Retail/ Residential 941 Julia Street Renovation Hadrian Properties LLC
Hotel/ Retail United Fruit Building ERG Enterprises
Hotel 749 Saint Charles Ave 749 St Charles Ave LLC
Hotel/ Retail 204 St Charles Ave 204 Staycation LLC
Hotel/ Residential Whitney Bank Conversion Bearing Point Properties
Hotel 468 St Joseph St 468 St Joseph LLC
Sources & Thank You.
SOURCES:
◦ Front Cover: This photo was captured at New Orleans Entrepreneur Week (NOEW) 2024, produced by The Idea Village.
LET’S MOVE FORWARD TOGETHER ABOUT THE DDD
Downtown Development District of the City of New Orleans 201 St. Charles Ave, Ste 3912 New Orleans, LA 70170 | 504.561.8927
Created by the Louisiana Legislature in 1974 (LA Rev Stat § 33:2740.3) as the nation’s first assessmentbased Business Improvement District, the Downtown Development District of the City of New Orleans (DDD) provides enhanced economic development and public space services to Downtown New Orleans. It accomplishes its mission through initiatives such as employing dedicated city planners to assist Downtown property and business owners, administering multiple grant programs, employing Public Safety Rangers and Clean Team sanitation workers, providing significant funding for outreach to the homeless and additional New Orleans Police Department patrols and armed private security throughout the District. The DDD services the area bounded by Iberville Street, the Pontchartrain Expressway, Claiborne Avenue, and the Mississippi River.
DDD is funded by a property tax millage assessed on each non-exempt property within the District. DDD’s lifespan was initially ten years, and on December 8, 1979, a successful citywide referendum secured longevity for DDD. It authorized DDD to raise its property tax rate to as much as 22.9 mills (a privilege the DDD has never exercised); it gave DDD the authority to sell up to $7.5 million in bonds for use in capital improvement projects; it extended DDD’s lifespan for an additional 25 years to December 31, 2005; and it provided for a future election in which voters could extend DDD for an additional 25 years beyond 2005. An election was held on April 7, 2001, with 60% voting in favor, and DDD’s lifespan was extended through 2030.