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THE MARKET REPORT Where work and culture meet what’s possible.

Q4 / 2023

Table of Contents

LETTER FROM THE PRESIDENT & CEO........................................... 1 LETTER FROM THE MAYOR.............................................................. 2 STAFF + BOARD................................................................................. 3 DDD OPERATIONS YEAR IN REVIEW.............................................. 4 DOWNTOWN: BY THE NUMBERS..................................................... 6 TECH + INNOVATION.......................................................................... 7 RETAIL................................................................................................. 8 HOTEL + TOURISM.......................................................................... 12 MULTIFAMILY.................................................................................... 14 OFFICE............................................................................................... 16 NEIGHBORHOOD MOBILITY........................................................... 18 RESIDENTIAL DEMOGRAPHICS.................................................... 20 ACTIVE DEVELOPMENTS LIST...................................................... 22 ACTIVE DEVELOPMENTS MAP...................................................... 24 THANK YOU..................................................................................... 25

Across all economic sectors, Downtown continues to see modest growth and stability, with retail vacancy rates having decreased by nearly 3.5% since the beginning of 2023. Throughout the year, the District saw an average of eight new retail openings in each quarter, and several national and international businesses chose Downtown New Orleans for their headquarters. The DDD team hopes to see even more in 2024 with increased attraction efforts through active participation in Innovative Commerce Serving Communities (ICSC) events and enhanced deployment of clean and safe activity programs along the Canal Street corridor. A data point of note is the continued investment in hotels and tourism – a critical component of the Downtown economy. As of this quarter, there are more than 1100 new hotel rooms under development as part of nearly $800 million in real estate development throughout Downtown. With major events happening throughout the year, it’s no secret that New Orleans is “built to host” and will be Super Bowl-ready next year. The information, technology, and innovation sector continues to show growth and is rapidly becoming a valuable component of the Downtown economy. To showcase this emerging economic sector and highlight local entrepreneurs, we are introducing a new section to the report: Tech and Innovation. Each quarter, we will share exciting trends and introduce you to the entrepreneurs who are driving the industry. This quarter, you can read about local biotechnology company AxoSim. Housed in the New Orleans BioInnovation Center and spawned out of Tulane University, the firm just recently finalized an acquisition of StemoniX of Minneapolis. The acquisition doubles AxoSim’s capacity and is a prime example of how investment in technology can create opportunity. The end of 2023 and the start of 2024 bring a renewed focus and sustained sense of urgency for DDD as we embark on ambitious projects and partnerships to jump-start infrastructure projects, foster innovation, and leverage our sense of place and unique identity to cultivate a compelling address. I invite you to join us in March to celebrate the State of Downtown – the annual presentation of all things Downtown. There, we plan to go into more detail on these exciting trends and outline plans for 2024. As you read through the report, I urge you to share the exciting progress we are making with your colleagues and network. Thank you for your interest and support in developing a prosperous Downtown New Orleans. On behalf of the Downtown Development District Board of Commissioners and staff, I proudly share with you the Market Report: Q4 2023. Davon Barbour President & CEO

A Message from the President & CEO

DDD is excited to present the Q4 2023 Market Report, a data and metrics-driven analysis of economic and real estate trends across Downtown New Orleans that also tells the story of the businesses and people that are moving the needle toward a revitalized and thriving economy.

A Message from the Mayor

Throughout 2023 and the fourth quarter, my administration has leveraged our partnership with the Downtown Development District (DDD) to deliver on projects that continue to shape the future of Downtown New Orleans. In line with my focus and priority of ridding the city of blight, DDD’s partnership with the City to fund a Code Enforcement Inspector dedicated to Downtown helped yield $45,000 in fines for derelict properties in the fourth quarter alone. As properties are identified for violation, our teams work together to make sure they move through the process as quickly and efficiently as possible. The city also released an advertisement for bids to demolish the long vacant Plaza Tower, so that we can stand ready to spur either much-needed renovation or demolition as we move through 2024. As I stated in my State of the City Address, work has continued on the BioDistrict Strategic Plan in partnership with DDD and the Greater New Orleans Foundation. With a plan in place, business leaders, universities, and entrepreneurs will have a road map to a successfully transformed innovation district that connects resources from Xavier University to the Downtown medical centers. I encourage you to take this step with me towards a new component of our economy that has the potential to build generational wealth throughout New Orleans neighborhoods. Finally, these past few months included many exciting events and opportunities to showcase the unique talents and culture of our city’s epicenter Downtown. In November, we hosted the 50th anniversary of the Bayou Classic – the great rivalry game between Southern University and Grambling State University. As two prominent historically Black universities, this event brings thousands of attendees from across the state and country to celebrate and reconnect, while supporting our local economy. As we move into 2024, I am excited to bring all hands on deck as we prepare for hosting Superbowl LIX in 2025 – a significant event that will elevate our city and unique culture on the global stage to millions of viewers across the world. LaToya Cantrell Mayor of the City of New Orleans

Staff + Board STAFF Davon Barbour

PRESIDENT & CEO

Bianka Brown

CHIEF FINANCIAL OFFICER

EXECUTIVE COMMITTEE

Hunter Hebert

Gregory Curtis

Ashley Mills

Carla Major

René Pastorek

Chris R. Ross

Jared Brossett

Kristi Taglauer

Donald G. Clouse

COMMISSIONERS

John Roussell

Coleman Adler

Esther Boone

William Bradshaw

Tyler Correa

Damon Burns

Meaghan Nguyen

Alex Glaser

Stuart Taylor

Leann O. Moses

Francia Barradas

Edwin Murray

WINDSOR COURT HOTEL | CHAIR

CHIEF PLACEMAKING OFFICER

DELGADO COMMUNITY COLLEGE | VICE CHAIR

CHIEF MARKETING OFFICER

NAI/LATTER & BLUM, INC. | TREASURER

CHIEF ECONOMIC DEVELOPMENT OFFICER

HOTEL PROVINCIAL NEW ORLEANS | SECRETARY

DIRECTOR OF POLICY & EXTERNAL AFFAIRS

PUBLIC SAFETY MANAGER

ADLER’S JEWELRY

PUBLIC SPACE OPERATIONS MANAGER

GREEN COAST ENTERPRISES

MARKETING & COMMUNICATIONS SPECIALIST

FINANCE NEW ORLEANS

ECONOMIC DEVELOPMENT SPECIALIST

JONES WALKER

ECONOMIC DEVELOPMENT SPECIALIST

CARVER, DARDEN, KORETZKY, TESSIER, FINN, BLOSSMAN & AREAUX, LLC

FINANCE & ADMINISTRATION SPECIALIST

CHIEF OF STAFF TO THE PRESIDENT & CEO

LSU HEALTH NEW ORLEANS

Tempestt E. Woods

ADMINISTRATIVE ASSISTANT

DDD Operations Year in Review Public Safety Stats

9,083 19,470 3,268 300 Hospitality Checks

Business Checks

Homeless Outreach Engagements

Safe Walks

Clean Team Stats

54,736 6,004 4,176 50 Gallon Trash Bags Used

Graffiti Removed

Block Faces Power Washed 5

By the Numbers

Holiday Roundup Halloween

Over 50%

of the 291K Halloween weekend visitors to Downtown traveled over 100 miles to celebrate

Holiday Season Visitor Traffic

Highest since 2019 1.5M visitors to Downtown during the month of December

Luna Fete

67.6k

unique visitors were present in and around Convention Center Boulevard throughout the DDD-sponsored Luna Fete 6

Downtown New Orleans is rapidly transforming into a hub for cutting-edge technology. This dynamic shift not only marks a significant departure from the city’s conventional image but also lays the groundwork for a promising ecosystem of entrepreneurship and innovative life science businesses. From cutting-edge research facilities like the New Orleans BioInnovation Center to collaborative co-working spaces like The Shop at CAC, the infrastructure supporting this wave of emerging tech is fostering an environment where ideas can flourish and large-scale problems can be solved. AxoSim, a Downtown New Orleans biotech company specializing in non-animal drug testing for degenerative neurological diseases, completed its first major acquisition in Q4 2023. Based out of the New Orleans BioInnovation Center located at 1441 Canal, AxoSim purchased Vyant Bio’s Minneapolis-based StemoniX subsidiary for an undisclosed amount. The purchase adds StemoniX’s drug-testing platform and 14,000 square feet of additional research, development, and manufacturing space at the other end of the Mississippi River. When asked about the broader outlook of the New Orleans BioDistrict, AxoSim founder and CEO Lowry Curley had positive thoughts. “I am on the board [of the BioDistrict] and it’s really exciting to see us get some momentum. [. . . ] I would like to see. . . when Charity [Hospital’s $500 million redevelopment] comes online . . . Also, the BioDistrict is investing in beautification and services and all these different things so the district itselft really means something.” - AxoSim CEO Lowry Curley on the BioDistrict (nola.com November 2023) One Downtown-based startup that exemplifies the burgeoning tech ecosystem is RCOAST, a service-driven company whose goal is to automate the process of monitoring and managing coastal erosion through LiDAR scanning and mapping technology. Like many New Orleans startups, the founders of

RCOAST, Dr. Christy Swann and Trey Cloutier, participated in business accelerator programs IDEAInstitute and VILLAGEx, both through The Idea Village, a nonprofit committed to helping startup founders across the Gulf South scale their ventures. The Idea Village and RCOAST both operate out of The Shop at CAC, a modern coworking space within the Contemporary Arts Center located at 900 Camp Street. “The IDEAInstitute played a crucial role in enabling RCOAST to assess our product-market fit, refine our alignment with customers, and ultimately, secure victory in the IDEAInstitute pitch competition. This success propelled us to pursue VillageX, an experience that significantly transformed RCOAST from a promising idea with a handful of repeat users into a robust business, enriched with local networks, mentorship, and dedicated product engineering support.” - RCOAST Co-Founder Dr. Christy Swann on the IDEAInstitute

Tech & Innovation

Creating Opportunities at the Intersection of Commerce & Culture

Retail Market Conditions

Commerce in the Core of New Orleans From October to December, Downtown’s retail occupancy stood at 88.35%, increasing by 0.31% from Q3. Notably, retail occupancy has increased from 84.94%, or 15.06% vacancy, in Q1 of 2023, showing continued positive recovery in the final months of the year. In other retail news, the average asking rent per square foot continued to rise. Downtown rents saw an increase of 2.99% quarter over quarter, from $36.82 in Q3 to $37.92 in Q4. The rise in asking rents may be attributed to several factors including limited availability of desirable retail space, higher operating costs, labor shortage, and increased interest rates, according to real estate and investment management service provider Jones Lang LaSalle (JLL) in their United States Retail Outlook for Q3. The effects of these factors are particularly pronounced as the retail square footage in Downtown New Orleans held firm at 7.2 million square feet throughout the transition from Q3 to Q4. Future developments are anticipated, however, with ongoing construction activities in several new retail projects. These projects will collectively introduce 95,771 square feet of retail space across eight mixed-use developments, while an additional 38,822 square feet are in the planning or entitlement phases across ten projects. For detailed information on active developments, refer to the Active Developments Summary on page 22. With respect to retail performance, consumers continued to face increased prices in sectors such as housing, food, and medical care, with the Consumer Price Index for All Urban Consumers in the South region noting a 3.4% increase over 2022 across all sectors studied. Fortunately, that number is down 0.2% across all sectors studied in late 2023 and much lower than the 7%-10% increases seen throughout 2022 and

RETAIL MARKET CONDITIONS

early 2023. The decrease in the rate of inflation along with typical holiday expenditure patterns are evident as seen in an increase in total number of visitors over the prior year to Downtown’s primary retail shopping centers - the Riverwalk Outlets and Canal Place - during the holiday shopping season (Black Friday to December 24th). On Black Friday specifically, Downtown logged a 3.9% increase in visitor traffic over last year. Finally, Downtown welcomed several retail additions in Q4. Four are located in the Warehouse/Arts District: JOLIE (325 Julia Street) made headlines as New Orleans’ first lounge and brasserie, or ‘loungerie’, complete with live music, cocktails, and food; Easy Virtue Restaurant and Bar (878 Fulton Street) promises an unforgettable gastronomic experience located within the New Orleans Marriott; and Bearcat Baked (726 Julia Street), the local chain breakfast restaurant, opened to much anticipation. Joe’s Italian Bistro (901 Convention Center Boulevard) rounded out the Warehouse District additions serving authentic Italian fare. In the Central Business District, Kenji Omakase (217 Camp Street) located within the International Hotel, opened with a multi-course sushi menu. On Canal Street, New Orleans’ historic retail throughfare, national candy retailer IT’SUGAR (714 Canal Street) opened as the first of the two phased mixed-use hotel/retail development. Finally, Harb Perfumes & Cologne (115 Royal Street) opened, offering domestic and overseas fragrance options to visitors. In addition to the 7 new retailers, Lucy’s Retired Surfers Bar & Restaurant (701 Tchoupitoulas Street) completed an expansion project into an adjacent building, providing an additional 8,000 square feet of space including a new dining room and private rental area. Q3 2023

Q4 2023

QoQ% CHANGE

RETAIL - PRIMARY USE (SF)

5.5M

RETAIL - MIXED USE (SF)

1.7M

TOTAL SF

7.2M

VACANCY RATE (%)

11.96%

11.65%

-0.31%

AVG ASKING RENT PER SF (YTD)

$36.82

$37.92

2.99%

MARKET CAP RATE (YTD)

6.60%

6.65%

0.05%

SOURCE: COSTAR

BUSINESS BY RETAIL TYPE

OVER-THE-YEARS PERCENT CHANGE IN CONSUMER PRICE INDEX FOR ALL URBAN CONSUMERS (CPI-U), SOUTH REGION, Over-the-years percent change in Consumer Price Index for All Urban Consumers (CPI-U), South region, November 2020–November NOVEMBER 2020–NOVEMBER 2023 2023 All items

2% 2%1%

10%

All items less food and energy

46%

30%

20 No v

22 20 n Ja

No v Ja 20 n 20 20 21

Source: U.S. Bureau of Labor Statistics SOURCE: U.S. BUREAU OF LABOR STATISTICS

AVERAGE RETAIL ASKING RENTS PER Average Retail Asking RentsVS Per SF: Downtown Vs French Quarter SF: DOWNTOWN FRENCH QUARTER Downtown New Orleans

EATING & DRINKING PLACES

48%

MISCELLANEOUS RETAIL

28%

APPAREL & ACCESSORY STORES

FOOD STORES

AUTO DEALER, GAS STATION, AUTO AFTERMARKET

FURNITURE & HOME FURNISHINGS

GENERAL MERCHANT STORE

HOME IMPROVEMENT

SOURCE: 2023 ESRI BUSINESS SUMMARY DATA BASED ON DATA AXLE DATA (FEB 2023)

French Quarter

$40

ACTIVE RETAIL DEVELOPMENTS $30

$20

$10

$0 Q1 2019

Q1 2020

Q1 2021

Q1 2022

Q1 2023

PROJECTS

UNDER CONSTRUCTION

95,771

ENTITLED

9,090

SEEKING ENTITLEMENT

29,732

TOTAL

134,593

SOURCE: CITY OF NEW ORLEANS DEPARTMENT OF SAFETY & PERMITS

SOURCE: COSTAR

Retail Market Conditions

EVENT RECAP: ICSC NEW ORLEANS At the end of October, the local chapter of the Innovative Commerce Serving Communities (ICSC) hosted a walking tour of the development opportunities surrounding Spanish Plaza and Riverwalk Outlets Downtown. The tour ended with a panel discussion of local economic development with some of the biggest names in New Orleans business. The ICSC event was well attended, welcoming over 100 interested individuals excited to learn about entrepreneurship and economics within the city. The panel— which included well-known faces Ian McNulty, New Orleans food culture and dining writer and reporter, Rick Blount of Antoine’s, Michael Meredith of VGP Enterprise, and Tipitina’s co-owner/drummer Stanton Moore— impressed attendees with its lively discussion of past, present, and future endeavors in New Orleans from the panelists’ respective industries. While each of the panelists, as well as moderator Michael Hecht of Greater New Orleans Inc., contributed their own unique experience and perspective, they all agreed and focused upon the prevailing vibrancy and resiliency that comprises New Orleans’ local economy. Attendees were left with a hopeful message about the city’s future and a host of new connections made at the event.

Downtown New Orleans New Retail Openings Map 2023

Q1 NEW OPENINGS 1 Nostalgia NOLA 2 King 3 Harrahs Food Hall- Bobby’s Creole Cottage 4 Swoop’s NOLA 5 Brewery Saint X 6 7 Hype Haus Fitnesss 8 Namaste NOLA 9 Chapter IV 10

Q2 NEW OPENINGS

4 4

6 7

11 4

8 1 7

8 2 6

3 5

11 Pizza Luna

4 Dahla 5

1 Zesty Creole 2 Main Squeeze Juice Co.

3 Pour House 4 ShowBird 5 Plates Resturant & Bar 6 Bread & Butter Cafe

2 5

3 Shaw Art Studio

Q3 NEW OPENINGS

7 Snapper’s Seafood Restaurant 8 Mister Oso

Q4 NEW OPENINGS

1 Lucy's Retired Surfers Bar & Restaurant Expansion 2 JOLIE 3 Kenji Omakase 4 Easy Virtue Restaurant and Bar 5 Bearcat Baked 6 Harb Perfumes & Cologne 7 Joes Italian Bistro 8 IT’SUGAR

Hotel + Tourism Market Conditions

Driving Excellence in Downtown Hospitality For tourists visiting Downtown New Orleans, Q4 presented new opportunities to experience American history from two Downtown anchor institutions. The National World War II Museum (945 Magazine) unveiled the Legacy Pavilion, its $400M, seventh and final major expansion component dedicated to addressing the conflict’s world-shaping legacy. The New Orleans Ernest N. Morial Convention Center, located at 900 Convention Center Boulevard, also unveiled the first-ever permanent museum exhibit dedicated to the Civil Rights Movement in Louisiana. The museum is located near the Julia Street entrance and is an official stop on the Louisiana Civil Rights Trail. Visitors showed up in strong numbers this quarter to watch the Bayou Classic held at the Caesars Superdome over Thanksgiving Weekend. Over 142,000 fans visited the Superdome and Champion’s Square for the game, Battle of the Bands, and other events throughout the holiday weekend, representing an 11.4% increase over 2022. Moreover, nearly 267,000 people, visited Downtown throughout the long weekend, supporting local venues, retailers, restaurants, and hotels. New hotel developments also gained traction during Q4. Watermark Orleans LLC, the company who owns the 14-story former Whitney Bank Building and adjoining properties (228 Saint Charles), applied for a demolition permit that could pave the way for a 300k square foot boutique hotel. The Historic District Landmarks Commission (HDLC) also issued approval for a 4 story, 18,000 square foot newbuild hotel on a vacant lot located at 739 Convention Center Boulevard.

Ashford Hospitality Trust is moving forward with a nearly $1.8M renovation of Le Pavillon hotel, located at 833 Poydras Street, that will transform the space into a Tribute Portfolio property. Ashford Hospitality Trust President & CEO Rob Hays said: “With its prime location and proximity to major demand generators in Downtown New

Orleans, the transformation of this landmark hotel to a Tribute property is expected to elevate the hotel into a desirable niche in the very attractive New Orleans market.” The renovation is expected to take place during Q1 of 2024. (hotelmanagementnetwork.com, October 2023)

ACTIVE HOTEL DEVELOPMENTS PROJECTS

ROOMS

UNDER CONSTRUCTION

746

ENTITLED

283

SEEKING ENTITLEMENT

TOTAL

1,123

SOURCE: CITY OF NEW ORLEANS DEPARTMENT OF SAFETY & PERMITS

Multifamily Market Conditions

Downtown New Orleans: By and For Everyone Q4’s Downtown multifamily market saw stabilization after trending slightly down in Q3. While vacancy rates are slightly up and the average price per unit for sale dipped by 2.8%, average rental rates remained relatively the same. Downtown New Orleans exhibited an average rental rate of $1,962, a $2 increase QoQ, while the New Orleans Metro dropped $3 over the last quarter to $1,354.

to enable a planned mixed-use residential conversion. Once complete, the project intends to introduce 430 units of apartments, condos for sale, and commercial short-term rentals to the Downtown market. Additional office and commercial spaces will be incorporated, with nearly 12,000 square feet of additional space to be added on top of the existing garage structure for exterior amenities.

Current multifamily projects of note include 604 Baronne, an historic 3-story building slated for renovation into a mixed-use business and apartment building that will deliver 5 new units and ground floor retail use. Also, Tivoli Place at 1040 Saint Charles Avenue is set to undergo $32M of renovations as per permits issued in December 2023. The 8-story, 133k square foot former historic hotel contains 163 affordable senior living apartments. The renovation includes substantial funding from the United States Department of Housing and Urban Development (HUD).

Also residents were treated to several DDD-produced and supported events in their “backyards” in Q4 including: • Le Petit Parc - concert series in partnership with local musician Joshua Starkman held in Legacy Park (730 Baronne Street). • National Night Out - a celebration of the Officers of the NOPD 8th District. • The Lighting of Canal - DDD’s annual lighting ceremony along historic Canal Street. • Children’s Hospital New Orleans LCMC Holiday Parade - the 2nd annual holidaythemed float parade that traveled through the French Quarter, to Canal Street and through the Warehouse/Arts District.

1515 Poydras, one of Downtown’s Class A office buildings, received a variance extension

ACTIVE MULTIFAMILY DEVELOPMENTS PROJECTS

UNITS

UNDER CONSTRUCTION

377

ENTITLED

PROPOSED

TOTAL

433

SOURCE: CITY OF NEW ORLEANS DEPARTMENT OF SAFETY & PERMITS

RENTAL RATE COMPARISONS BY NEIGHBORHOOD AVERAGE RATE PER UNIT DOWNTOWN NEW ORLEANS $1,962 NEW ORLEANS METRO $1,354 SOURCE: COSTAR

MULTIFAMILY MARKET CONDITIONS Q3 2023

Q4 2023

QoQ CHANGE %

TOTAL RESIDENTIAL INVENTORY (UNITS)

6300

AVG RESIDENTIAL VACANCY RATE

7.3%

7.7%

0.4%

AVG PRICE PER UNIT FOR SALE (YTD)

$203,899

$201,448

-1.2%

AVG RENTAL RATE PER UNIT

$1,960

$1,962

0.1%

-28

-5

N/A

QUARTERLY ABSORPTION (UNITS) 15

SOURCE: COSTAR

Office Market Conditions

Big Moves to Downtown While office vacancy rates overall rose one tenth of a percentage point this quarter, the Downtown market remains relatively unchanged quarter-over-quarter. While the key metrics that define the office market don’t show significant movement, there were some notable moves during Q4 that solidified Downtown New Orleans as a central place of business. In late October 2023, national planning and engineering consulting firm HNTB Corporation relocated its local office to Downtown New Orleans. Their new location at the PanAmerican Life Center (601 Poydras Street) boasts an attractive and optimally designed 4,939 square feet of renovated space. “Downtown was an absolute necessity for us,” commented HNTB leadership on their move to the neighborhood. “Downtown is a hub that will put us closer to the core clients we work with. The layout is open – our offices have glass walls to create an open feel and encourage collaboration among our employees.”

new headquarters are in the heart of the city’s BioDistrict, an emerging hub for biomedical job growth and investments, enhancing opportunities for New Orleans to become a global center of excellence in research and healthcare specialties.

Team Gleason Foundation announced it is relocating its office to Benson Tower (1450 Poydras Street), allowing the team to work alongside Ochsner Health System to enhance collaborative opportunities. The Benson Tower location will allow Team Gleason to continue to expand its resources to meet the growing need for their specialized care services. Moreover, the

Another notable office market move includes iHeart Media, which sold its previous location at 929 Howard in 2022 but is retaining a presence Downtown inside the Energy Centre (1100 Poydras Street) in a 3,700 square foot renovated office valued at $850K. 929 Howard was later purchased by Southern Glazer’s Wine & Spirits. In November 2023, the company applied for a renovation permit totaling over $2.8M, which will deliver office spaces on the upper floors and a tasting room on the ground floor.

OFFICE MARKET CONDITIONS

Q3 2023

Q4 2023

QoQ% CHANGE

TOTAL OFFICE SF

16.7M

CLASS A OFFICE SF

9.4M

TOTAL VACANCY RATE (%)

12.0%

12.1%

0.1%

CLASS A VACANCY RATE (%)

16.8%

17.4%

0.6%

AVG ASKING RENT PER SF

$21.11

$20.99

-0.6%

CLASS A AVG ASKING RENT PER SF

$21.01

$20.90

-0.5%

CAP RATE

12.6%

12.2%

-0.4%

SOURCE: COSTAR

DOWNTOWN NEW ORLEANS INDUSTRIES AGRICULTURE/MINING

MANUFACTURING

COMMUNICATION

WHOLESALE TRADE

CONSTRUCTION

TRANSPORTATION

GOVERNMENT

FINANCE/INS/REAL ESTATE

10%

RETAIL TRADE

11%

SERVICES ( OTHER )

INDUSTRY

COUNT

Professional, Scientific, and Technical Services

8,344

16.9%

Health Care and Social Assistance

8,233

16.6%

Accommodation and Food Services

7,279

14.7%

Administration & Support, Waste Management and Remediation

4,765

9.7%

Finance and Insurance

3,270

6.6%

Public Administration

3,134

6.4%

Information

2,844

5.8%

40.3%

Retail Trade

1,703

3.5%

10.2%

Arts, Entertainment, and Recreation

1,690

3.4%

1,582

3.2%

16%

UNCLASSIFIED

18%

SERVICE

34% 0

SOURCE: MAPDASH

JOBS BY NAICS INDUSTRY SECTOR

500

1,000

1,500

2,000

NUMBER OR BUSINESS

TOP 10 HOME LOCATIONS OF DOWNTOWN WORKERS New Orleans Metairie

19,868 5,026

Kenner

1,544

3.1%

Management of Companies and Enterprises

Baton Rouge

815

1.7%

Mining, Quarrying, and Oil and Gas Extraction

1,568

3.2%

Terrytown

790

1.6%

Other Services (excluding Public Administration)

1,176

2.4%

Marrero

765

1.6%

Real Estate and Rental and Leasing

908

1.8%

Chalmette

622

1.3%

Transportation and Warehousing

814

1.6%

Harvey

548

1.1%

Wholesale Trade

748

1.5%

Educational Services

393

0.8%

Manufacturing

352

0.7%

Construction

267

0.5%

Utilities

212

0.4%

Agriculture, Forestry, Fishing and Hunting

0.1%

49,347

100%

Gretna

540

1.1%

River Ridge

525

1.1%

All Other Locations

18,304

37.1%

Total

49,347

100%

SOURCE: U.S. CENSUS BUREAU, ONTHEMAP APPLICATION AND LEHD ORIGIN-DESTINATION EMPLOYMENT STATISTICS (BEGINNING OF QUARTER EMPLOYMENT, 2ND QUARTER OF 2002-2021).

TOTAL

SOURCE: U.S. CENSUS BUREAU, ONTHEMAP APPLICATION AND LEHD ORIGIN-DESTINATION EMPLOYMENT STATISTICS (BEGINNING OF QUARTER EMPLOYMENT, 2ND QUARTER OF 2002-2021).

Neighborhood Mobility

DOWNTOWN NEW ORLEANS TOTAL VISITORS, WORKERS, AND RESIDENT COUNTS

sporting Sporting event Event

holiday Holiday

community Community programming Event

250,000 200,000 150,000 100,000 50,000 0 October

November

December

In the Heart of the City: Love Where You Live, Work, and Play While visitor traffic patterns in Downtown New Orleans exhibited positive performance in December, the months of October and November fell slightly below the levels recorded in 2022. Throughout Q4 2023, visitors, residents, and workers made 12.5 million trips Downtown, representing a marginal decrease less than a 1% difference, compared to the 12.6 million in Q4 2022. On notable dates such as Black Friday and New Year’s Day, 2023 outperformed the prior year. When compared to Q4 2019 as a baseline, Downtown is seeing an 82% recovery rate in total number of visits.

Downtown New Orleans hosted several community events during Q4 that attracted pedestrian traffic to the area. These events included the self-guided

Downtown also saw increased activity during the Krewe of Boo Halloween and Children’s Hospital New Orleans Holiday parades on October 21st and December 2nd, respectively. Interestingly, two of five of the top places where visitors’ journey Downtown originate on the days of Krewe of Boo parades in both 2022 and 2023 are Tulane University affiliated locations, demonstrating a strong preference within that demographic to celebrate Halloween Downtown and its surrounding areas. It is important to note that the parades are family-friendly but attract a wide demographic of revelers. In analyzing foot traffic data of Downtown visitors throughout the day and into the evening when Krewe of Boo rolled through Downtown, visitors were split nearly evenly, 52.6% and 47.4% between family and non-family households. On the day of the Children’s Hospital New Orleans holiday parade, an afternoon event, the amount of census-designated family household visitation increased to 56%.

Entergy New Orleans, in collaboration with the City of New Orleans, has successfully deployed 30 charging stations across 25 locations throughout the city. The latest station, situated in front of New Orleans City Hall, is now operational.

PHOTO SOURCE: NOLA.COM / ENTERGY NEW ORLEANS

The above graph illustrates peak points of pedestrian foot traffic in Downtown throughout the quarter. Many of the peak dates coincide significantly with NFL and NCAA games held at the Caesars Superdome, which boasts a maximum capacity of 73,208. The dates of New Orleans Saints games, well attended New Orleans Pelicans games, The Bayou Classic (the annual Thanksgiving weekend faceoff between Southern University and Grambling State), and The Sugar Bowl (the annual New Years Day college football bowl game) are shown in blue and labeled as “sporting events.”

art walks Art for Art’s Sake on October 7th and Luna Fete between December 7th and 10th. Additionally, Lafayette Square hosted its most well attended event of the year, the Crescent City Blues & BBQ Festival from October 13th to 15th.

New Orleans to Mobile Passenger Rail

According to data by Placier.ai, a pedestrian analysis platform, approximately 70% of those who visited Downtown in Q4 traveled 30 miles or more. To bolster the region’s connectivity options, transit advocates have pushed for increased intercity service with a centralized hub at the Union Passenger Terminal (1001 Loyola Avenue). Moreover, Amtrak has directed funding toward the final stages of design, development, and construction essential to connect New Orleans and Mobile, AL through twice-daily Gulf Coast passenger rail service. Considered the “last major funding hurdle” by U.S. Senator Roger Wicker, R-Miss., the $178.4 million award from the Federal Railroad Administration (FRA) to provide crucial funding for various improvements, including track and signal enhancements, upgrades to specific grade crossings, and construction activities,

is now in place. These efforts aim to facilitate the reintroduction of passenger rail service, with two round-trip trains per day, ensuring targeted trip times and addressing potential adverse impacts on freight operations from CSX Transportation, Norfolk Southern Railway, and the Port of Mobile. With this funding, there is optimism for the commencement of service in 2024.

RIDE New Orleans Releases their 10th State of Transit Report Regional public transportation advocacy group, RIDE New Orleans, released its 10th State of Transit Report in Q4. The report highlighted noteworthy improvements to the local transit system such as a substantial reduction in peak wait times, with most Downtown transit stops experiencing waits of 0-10 minutes. Job access has seen modest but tangible enhancements, particularly Downtown, where 40%-60% of jobs located in the Downtown are now reachable within 60 minutes using public transit and walking from another part of the New Orleans metro. Another significant milestone was the recent award of a $24.8 million grant to design and construct a Downtown Transit Center at Basin

Street, improving options for riders Downtown and throughout the region. The report did not shy away from the areas of improvement and detailed a deficit of operational buses owned by the Regional Transit Authority (RTA) and the anticipated retirement of several more vehicles. The RTA has announced plans for the purchase of several new, eco-friendly vehicles, although delivery is spread through the next several years. Changes in service are expected during the transitional period until the maintenance plan is realized. Overall, these collective findings encapsulate a decade of transformation and contribute to a more robust, efficient, and equitable transit system in the region.

PEDESTRIAN COUNTS AREA

LOYOLA AVENUE

CONVENTION CENTER BLVD

POYDRAS STREET

CANAL STREET

DAILY AVG Q4 2022

11,244

17,002

21,945

36,462

DAILY AVG Q4 2023

11,183

16,568

21,658

34,448

PEAK COUNT Q4 2023

24,975

34,236

40,236

75,594

DATE OF PEAK

11/25/23

12/30/23

11/25/23

10/21/23

YoY% CHANGE

-1%

-3%

-1%

-6%

SOURCE: PLACER.AI

Residential Demographics

Defining Downtown in People, Potential, and Progress HOUSEHOLD INCOME DISTRIBUTION

(CENSUS TRACT 134) DDD TRADE ___________________________________________________________________ LESS THAN $15,000

15.5%

17%

$15,000 TO $24,999

6.4%

9.7%

$25,000 TO $34,999

3.5%

8.7%

$35,000 TO $49,999

5.6%

10.4%

$50,000 TO $74,999

11.2%

16.5%

$75,000 TO $99,999

13.8%

10.4%

$100,000 TO $149,999

19.2%

13.8%

$150,000 TO $199,999

9.9%

6.1%

$200,000 OR MORE 14.9% 7.3% ___________________________________________________________________ SOURCE: 2021 ACS 5-YEAR ESTIMATES DATA

The DDD is defined by four boundaries: Claiborne Avenue to the Mississippi River and Iberville Street to the Pontchartrain Expressway. Within these boundaries, we can examine population characteristics of the District such as age, income, and other demographics. As the DDD draws visitors and workers from areas beyond its boundaries, it is necessary to provide stakeholders with trade area analysis. This helps determine the potential demand for development opportunities that guide decisions about the types of business, services, and design that best serve Downtown New Orleans. The DDD’s trade area is defined as the 20-minute drive time radius from the District’s core.

MEDIAN HOUSEHOLD INCOME DOWNTOWN NEW ORLEANS

ORLEANS PARISH

USA

$90,150

$45,594

$54,943

SOURCE: MAPDASH & 2021 ACS 5-YEAR ESTIMATES DATA

•

OVER 3M UNIQUE VISITORS to Downtown during Q4

•

MORE THAN 50% OF VISITORS TRAVELLED OVER 100 MILES to visit Downtown New Orleans

•

TOURISTS FROM ALL 50 STATES visited Downtown in Q4

SOURCE: PLACER.AI

68%

OF DOWNTOWN RESIDENTS HAVE OBTAINED A BACHELORS DEGREE OR HIGHER SOURCE: MAPDASH

RACE & ETHNICITY WHITE

61.3%

BLACK

20.6%

TWO OR MORE RACES

8.5%

ASIAN

6.6%

SINGLE RACE OTHER

2.9%

HISPANIC OR LATINO

WHITE

42.6%

BLACK

40.5%

TWO OR MORE RACES

SINGLE RACE OTHER

5.8%

ASIAN

HISPANIC OR LATINO

DDD AREA

TRADE AREA

12.4%

U.S. Federal government agencies are required to follow the standards set forth by the Office of Management and Budget (OMB). These standards distinguish between race and Hispanic origin (also referred to as ethnicity) as separate and distinct concepts. As a result, the “Race and Ethnicity” chart may show a value that exceeds 100%

DDD HOUSING TENURE 18.7%

81.3%

RENTER -OCCUPIED

81.3%

OWNER OCCUPIED

18.7%

Active Developments

Under Construction

Entitled

TYPE

Seeking Entitlement NAME

DEVELOPER

ADDRESS

Retail/ Hotel

330 Baronne St Renovation

Baronne Union Development LLC

Hotel

Caesars New Orleans

Harrah's New Orleans LLC

Retail/ Hotel

Rubenstien Hotel

Rubenstien Family/ Joe Jaeger

Retail/ Hotel

714 Canal St Renovation

714 Canal LLC

Retail/ Hotel

The Mayfair

Mohamed Halum

Retail/ Hotel

129 Camp St Renovation

Risna LLC

Office

Common House

420 Julia Property Holder LLC

Retail/ Hotel/ Residential

Memoir Residential

420 Julia Property Holder LLC

Hotel

Little Lagniappe Hotel

747 St Charles Avenue Investment LLC

Hotel

Hotel Perle

Urban 757 LLC

Retail/ Hotel

Vintage Rock Club/ CopperVine Expansion

1009 Poydras LLC

Residential

The Mary Beth

Dear Rampart LLC

Mixed Use

Charity Hospital

1532 Tulane Partners Inc

Hotel

222 Loyola St Hotel

Plaza Realty LLC

Hotel

1050 Annunciation St Hotel

1050 Annunciation St Development Group LLC

Residential/ Retail

604 Baronne St Renovation

604 Baronne LLC

Retail/Hotel

934 Canal St Renovation

1015 Canal LLC/934 Canal LLC

Hotel

NOLA AC Hotel

Nola Lodging Group LLC

Hotel

739 Convention Center Blvd Hotel

739 Convention Center Blvd LLC

Hotel

516 Natchez St Hotel

MURA, LLC

Hotel

Moxy Hotel

D-Barlo LLC & John Campo, Jr

Retail

744 Camp St Renovation

748 Zen Associates LLC

Hotel

611 Commerce St Hotel

611-613 Commerce LLC

Retail/ Residential

827 Carondelet St Renovation

827 Carondelet LLC

Hotel

Hotel Santa Maria

Diamond Street Ventures LLC

Hotel

The George Hotel

WestCems Corp

Retail/ Residential

955 Howard Ave Renovation

Vinson Properties#1 LLC

Retail/ Residential

941 Julia St Rennovation

Hadrian Properties LLC

Hotel

321 St Charles Ave Hotel

ERG Enterprises

Hotel

749 Saint Charles Ave Hotel

749 St Charles Ave LLC

Hotel

204 St Charles Ave Hotel

204 Staycation LLC

# STORIES

TOTAL SF

TOTAL OFFICE SF

TOTAL RETAIL SF

RESIDENTIAL UNITS

HOTEL ROOMS

COST OF CONSTRUCTION

26,062

1,083

$8,000,000.00

292,149

340

$325,000,000.00

28,000

$6,000,000.00

25,238

4,115

$7,500,000.00

64,101

13,943

$13,837,402.00

11,307

3,250

$1,500,000.00

18,055

$6,750,000.00

101,355

27,123

$31,014,278.00

2072

$3,900,000.00

46,232

2,908

$250,560.00

37,165

2,447

27,349

8688512*

9,466

$1,575,000.00

1,000,000

500,000

16,000

300

150

$245,100,354.00

46,195

$20,174,001.00

19,997

$10,000.00

6,096

541

$787,746.00

13,311

1,687

133,549

5,112

173

$40,000,000.00

18,000

$5,000,000.00

3,000

$3,800.00

16,309

1,750

6,525

$250,000.00

31,469

$4,193,000.00

60,048

3,283

$9,000,000.00

5,019

$750,000.00

17,715

$4,200,000.00

27,545

11,056

$4,200,000.00

3,997

1,356

$255,700.00

101,854

6,287

$22,000,000.00

28, 058

$40,000,000.00

5,669

1,225

$1,250,000.00

Totals

2,159,500

520,502

134,593

432

1123

$802,501,841.00

Active A C T I V E Developments D E V E L O P M E N T SMap MAP

1 330 Barrone Renovation 2 Caesars New Orleans 3 Rubenstein Hotel 4 714 Canal Renovation 5 The Mayfair 6 129 Camp Renovation

7 Common House/ Memoir Residential 8 Little Lagniappe Hotel 9 Hotel Perle 10 Vintage Rock Club/ Coppervine Expansion

11 The Mary Beth Hotel

28 23

8 9

30 6

15 604 Baronne Renovation

16 934 Canal Renovation 17 NOLA AC Hotel 18 739 Convention Center Blvd Hotel 19 516 Natchez St Hotel 20 Moxy Hotel

27 21

21 744 Camp St Renovation 22 Commerce St Hotel

23 827 Carondelet St 24 Hotel Santa Maria

18 14

13 222 Loyola Renovation 14 1050 Annunciation St Hotel

12 Charity Hospital

25 The George Hotel

26 955 Howard St Renovation 27 941 Julia St Renovation 28 321 St Charles St Hotel

17 Under Construction

29 204 St Charles St Ave Hotel

Entitled

Seeking Entitlement

28 United Fruit Building 29 749 Saint Charles Ave 30 204 St Charles Ave

Sources & Thank You. THANK YOU: • Tech and Innovation ◦ Quote: Dr. Christy Swann / Co-Founder / RCOAST ◦ Photo: Gina Jackson / Director of Special Projects / AxoSim • Retail ◦ Photo: Kiah Darion / General Manager / JOLIE • Neighborhood Mobility ◦ Photo: NOLA.com / Entergy New Orleans ◦ Photo: Dogora Sun / Shutterstock: Photo

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 Service 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 currently of 17.12 mills, which is 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.

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