Office Market Report: Rising Rental Rates, More Flexible Leases Among Trends
NEW ORLEANS — The 2022 Greater New Orleans Annual Office Market Report, produced by Corporate Realty, highlights several post-COVID office market trends. These include rising rental rates, an increase in more flexible lease terms, and renovations to support new uses of office space that help companies be more efficient.
“The office leasing market has remained stable,” said a Corporate Realty spokesperson. “Although remote work remains to some degree, employers find their teams are more productive working in office environments and so the employers are more interested in finding new, more flexible ways to use their office environments.”
The 11th annual report examines the greater New Orleans office market and provides occupancy and rental rates for each office building that contains at least 20,000 rentable square feet. It also includes an overview of the Baton Rouge office market.
“While there have been no new office towers in the greater New Orleans market since the 1980s, we are seeing landlords invest in improvements to help make their buildings more attractive,” said the spokesperson. “We are also seeing more spec suites — turnkey office spaces — being built to more efficiently attract tenants. To keep up with the high operating expenses and construction costs, however, the decade-long static rental rates in the New Orleans market will need to increase.”
In addition to the annual office market report, Corporate Realty publishes quarterly office market reports compiled by leasing director Bruce Sossaman. Download the free reports here.
“Corporate Realty is pleased to provide this Annual Office Market Report to the community. While the office market, and our community, are facing some difficult issues, we remain confident and bullish on the resilience of our community and the long-term strength of our office market,” said Michael J. Siegel, the company’s president.
Corporate Realty is a commercial real estate agency based in New Orleans and Baton Rouge that serves the entire Gulf Region. It was acquired in 2021 by Benson Capital, owned by Saints/Pelicans owner Gayle Benson.
