Commercial Real Estate Prices Ending 3rd Quarter 2020

charts for sale and lease

The 3rd quarter New Orleans/Metairie MSA commercial real estate market witnessed skyrocketing sale prices in shopping centers, steep declines in multi-family and slight increases in industrial, office and retail. The lease market was completely different, with declines in industrial prices and slight increases in retail and shopping centers with the office sector unchanged.

Over the last 3 months, over 500,000 square feet has been added to the market for sale, valued at $100 million, and 600,000 square feet added for lease. This article examines price changes over the last 3 months for the various categories of commercial property and looks for trends and opportunities.


Defiance of economics: adding 400,000 SF more supply with 111 properties for lease resulted in prices increasing.

Lease prices for office space in the New Orleans/Metairie Metropolitan Statistical Area averaged $17.99 per square foot, an increase of 30 cents per square foot with 111 properties for lease totaling 400,000 SF added to the market. Sale prices averaged $129/SF, an increase of $4/SF, with only 7 properties added. Actual sale prices averaged only 10% below list, which is a result of commercial brokers accurately pricing their listings.


Actual prices on the 21 retail spaces leased were 12% above market at $18.43/SF.

retail new orleans metairie

In the retail store category, there are 52 additional spaces for lease totaling 100,000 SF and averaging $16.41/SF, an increase of 24 cents/SF. Actual prices on the 21 retail spaces leased were 12% above market at $18.43/SF.

Over 100,000 SF was added for sale and 3 properties sold averaging $175/SF, about 16% below list but were on the market an average of 241 days.

Shopping Center 

shopping center new orleans metairie

The last 3 months saw 30 shopping center spaces totaling 144,000 SF added to the market, and none were leased. None were sold either. The average lease rate increased 46 cents/SF and sale price increased $35/SF, due to the addition of 2 high value shopping centers totaling 60,000 SF.


The industrial market was steady with only 7 properties added for lease and 9 added for sale. Lease rates increased 6 cents to $5.70/SF but sale prices increased $8/SF, or 20%, to $44/SF. There were 11 properties leased at 28% above average and 4 high valued properties sold for $58/SF, 31% above the average price.

Baton Rouge

100,000 SF was added to the market for sale and 800,000 SF for lease, but the additional supply did not always affect prices. On the lease side, industrial, office and retail increased slightly in price and shopping center and vacant land decreased. On the sale side, retail prices fell slightly but industrial and office increased slightly. Shopping center for sale prices increased 30% which is a big number for just a 3 month period.

For comparison charts of prices, see our page Louisiana Commercial Property Price Charts For 3rd Quarter