NEW ORLEANS – According to the Downtown Development District Q2 2025 Market Report, downtown New Orleans is riding a wave of commercial investment, with nearly $3 billion in planned projects across the Central Business District and surrounding neighborhoods.
The report, released in September, highlights Downtown’s role as the state’s largest employment center and a key driver of Louisiana’s economy. The district now represents nearly $1 billion in assessed property value, with an office inventory of 16.7 million square feet, 476 retail businesses, and 105 hotels offering more than 22,000 rooms.
“Confidence in Downtown’s future is evident across private investment, civic initiatives, and cultural momentum,” said Seth Knudsen, DDD president and CEO. “All of this is more than just growth; it’s momentum.”
Office Market Shows Stability
The office sector, long considered a reliable indicator for Downtown’s health, showed signs of stabilization in the second quarter. Vacancy dipped slightly to 12.6% from 13.4% in the previous quarter, while Class A vacancy fell to 19.2%. Asking rents climbed to $19.57 per square foot, a modest 0.9% gain that suggests property owners are regaining confidence.
“Market fundamentals remain generally stable,” Knudsen said. “The office sector is also stabilizing, with declining vacancy rates and renewed investment.”
Among the most significant deals of the quarter was Gayle Benson’s acquisition of 1515 Poydras Street, a 27-story Class A tower completed in 1983. The 529,000-square-foot property, which includes nearly 500 parking spaces, sits adjacent to both the Sports and Entertainment District and the BioDistrict. Corporate Realty will manage the building.
Michael J. Siegel, president of Corporate Realty, said the purchase reflects long-term confidence in Downtown. “Mrs. Benson’s commitment and vision are very apparent in her confidence in the Downtown business corridor,” Siegel said. “Her acquisition of 1515 Poydras is an important step in connecting the business community to the Medical District and the Sports and Entertainment District of New Orleans.”
Delta Utilities Anchors Downtown
Another major development came with Delta Utilities’ decision to expand its headquarters at Place St. Charles, a move tied to a series of acquisitions that have quickly elevated the company into the ranks of the nation’s top 40 natural gas providers.
Earlier this year, Delta purchased CenterPoint Energy’s natural gas operations in Louisiana and Mississippi, and in July it completed the acquisition of Entergy’s natural gas distribution businesses in New Orleans and East Baton Rouge Parish. Together, these deals give Delta nearly 600,000 customers across the Gulf South and assets valued at about $1.7 billion.
Signed in late 2024, Delta’s headquarters lease at Place St. Charles marked the largest Class A office transaction in five years. The deal is projected to generate $337 million in economic output, support nearly 900 jobs annually, and contribute $15 million in state and local tax revenues.
“High-profile project proposals like Delta Utilities’ expansion into Place St. Charles reflect a long-term belief in Downtown as a place to live, work, and thrive,” Knudsen said.
Construction Activity Gains Momentum
The Q2 report highlighted several adaptive reuse and construction projects that signal growing investor appetite for Downtown real estate:
- 300 St. Charles Avenue is undergoing renovation to house the Bienville Club, an upscale social and business space, along with private office suites.
- 210 St. Charles Avenue, part of the former Whitney Bank Complex, is being restored as a 37-room boutique hotel.
- 1000 Howard Avenue, a long-blighted former Archdiocese property, is being redeveloped into a 39-unit apartment-style hotel near the BioDistrict.
- Café Beignet is adding a new location inside the Sheraton Hotel on Canal Street.
- 333 North Diamond is being transformed into an eight-unit hotel in the Warehouse District.
Knudsen said these developments illustrate the momentum sparked by high-profile events such as Super Bowl LIX earlier this year. “The legacy of Super Bowl LIX goes far beyond a single weekend; it’s embedded in the bricks and mortar, blueprints, and business plans shaping a new era for the heart of the city,” he wrote.
Leasing Shows Demand from Legal and Professional Firms
Leasing activity added another layer of momentum. Corporate Realty reported new tenants at One Canal Place, including iCARE Relief FSG and Mansfield, Melancon, and Cranmer, while the Energy Centre secured renewals and new leases with firms such as Morgan Law Group, Young Law Firm, LeGlue & Company, Couhig Partners, Sakla Law Firm, and YouthForce NOLA.
These deals highlight sustained demand from professional and legal services, even as hybrid work continues to reshape office use.
Luxury and Retail Assets Draw National Interest
Investor confidence extended into the hospitality and retail sectors. Miami-based Gencom acquired the Ritz-Carlton New Orleans, reinforcing national interest in high-end hospitality assets. In the South Market District, Planet Fitness signed a lease for the former Arhaus space, providing a new wellness anchor in a mixed-use corridor.
At the same time, adaptive reuse continues to refresh historic properties. Award-winning chef Isaac Toups announced plans to open a new restaurant in the former Cotton Exchange building at 231 Carondelet Street. The Security Center, another unique Downtown property, was sold to a local owner with plans to convert it into a vault exchange and reception venue.
Forward Looking
For Knudsen, the combination of office stability, headline-making acquisitions, and adaptive reuse projects points to a Downtown positioned for growth. “As we celebrate DDD’s 50th year, we do so not just by honoring our past, but by actively shaping a Downtown that is cleaner, safer, and stronger than ever before,” he said.
With $3 billion in planned investment on the horizon, Downtown’s commercial core moved into the second half of 2025 with cautious optimism and visible momentum.
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