Most industrial property owners are shocked to discover the average time it takes to find a buyer or tenant in New Orleans is 368 days, and that is with an average asking price of $37.91 per square foot and lease price of $4.48 per square foot. But there is good news in that, for this month, supply is down. There are 88 properties for sale totaling 2.2 million square feet, which is down about 20% from the average, and 223 industrial properties for lease totaling 3.8 million square feet, down about 14% from the average. The average sale price occured 27% below the list price. The chart below shows the number of days on the market and the lease rate for industrial propeties in the New Orleans MSA, which includes Metairie and Kenner. You can see there is little direct correlation over the last 12 months, which means when lease rates are reduced, it does not cause a shorter number of days on the market, or cause a property to sell or lease faster. In economics, this is called “elasticity”.
source: LACDB, market statistics, industrial, new orleans MSA