This article drills down into the office market in New Orleans and Metairie, examining 350,000 square feet leased in 143 reported transactions, comparing office space lease terms from 2024 to 2023 and providing insight into office market trends.
In 2023, 184,885 square feet of office space was leased in 78 listings in 41 properties. The average space was 2,400 SF and leased at $19.75 per square foot, but the operating expense terms varied.
For example, triple net leases comprised only 9% of all office space leased but 59% was leased as full service. The average triple net rate was $16.77/SF and the average full service rate was $21.00/SF. Triple net leases are common in industrial spaces leased but full service is prevalent in the office sector.
The average space leased is 2,070 SF at $21.72/SF. As of October 31, 2024, there have been 66 office spaces leased totaling 136,000 square feet. At this pace, the year end total is forecasted to be 163,964 square feet.
Last year, 78 office spaces were leased in 41 properties, ranging from 300 SF to 12,864 SF, averaging 2,400 SF per space leased. Only 10% of the spaces leased exceeded 5,000 square feet. In 2024, spaces range from 167 SF to 18,000 SF, but of the 66 spaces leased, 60 were under 3,500 square feet.
SF Leased: 2024 is forecasted at 163,964, which is a 12% decline from 2023 when 184,885 SF was leased.
Days On The Market: 2024 is showing 284 days to lease office space, down 10% from 314 days last year.
Price: 2024 is averaging $21.72/SF vs. $19.75 last year.
To summarize, lease prices are up 10%, supply is down 12% and office spaces are leasing 10% faster; but the office market overall is soft for the typical agent. Assuming the average lease was for a period of 5 years and each property had one agent, the average 3% commission only produced an income to the agent of $13,000 per property.
For more information on the office market, including detail descriptions of operating expense terms, check out our two most popular articles:
