by Robert Hand, MBA, SIOR, CCIM
Lease prices for office space in the New Orleans/Metairie Metropolitan Statistical Area averaged $17.68 per square foot as of April 1, down 1.12% from last month but exactly the same price as one year ago, despite the fact that supply increased 1.53% with 3,749,980 square feet for lease compared to 3,693,478 square feet one year ago. There are 1,101 office properties for sale or lease and, of those, 961 are for lease and 140 for sale. Last month 20 office spaces were leased, which is below the average of 25 monthly for the last 2 years; however, there has been a wide range in the number of transactions over the last 2 years, from 12 to 49 office properties leased each month. The average office property is on the market for 291 days.
Sale prices for office space in the New Orleans/Metairie MSA averaged $105 per square foot as of April 1, down 3.5% from last month, despite the supply of office property for sale decreasing 40,788 square feet last month. Over the last year, office sale prices increased 2.8% while supply increased 183,296 square feet.
There are 140 office properties for sale, compared to 154 one year ago, resulting in a change in the market to larger office properties offered for sale, increasing the average to 11,259 SF from 9,045 SF one year ago.
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