04/02/2009

Excerpt from Times Picayune article covering UNO symposium event. N.O. real estate feeling pinch Recession's ripples cushioned somewhat Friday, April 03, 2009 By Kate Moran Business writer. While the tide of recovery money flowing into New Orleans has helped cushion the region from recession, local real estate experts said Thursday that various segments of the market, including retail, office and multifamily apartments are showing a few fissures. New Orleans has not suffered from epidemic foreclosures or job losses, but the troubles on Wall Street have ricocheted through this region all the same. Grim news reports have punctured consumer confidence, while the credit freeze has buyers, sellers and landlords in a chokehold. The downtown office market perhaps exemplifies the mixed fortunes of the local real estate market. Paul Dastugue III, president of Property One, noted that occupancy in the business district hovers around 90 percent, a figure that any city would envy. But occupancy is high partly because a number of buildings have been mothballed, from the Dominion Tower to the former Chevron building to 225 Baronne St. Dastugue was part of a lineup of local experts who gathered Thursday for the annual real estate and economic forecast sponsored by the University of New Orleans and Latter & Blum. Most of them struck an upbeat tone, noting that New Orleans continues to fare better than many cities even as its economy is beginning to show signs of stress. While the downtown office market remains stagnant in terms of occupancy rates and rents, Dastugue noted that landlords have consummated a number of high-profile leases in the past year. The law firm Liskow & Lewis signed a new lease in One Shell Square, while McGlinchey Stafford sold its building and relocated to the Pan-American building. Dastugue said the migration of tenants out of the downtown area and into the suburbs has slowed overall, but the north shore has nonetheless netted several high-profile companies that have invested in brand-new offices. In addition to Chevron and Wink Engineering, LLOG Exploration is building a new space at the Cypress Bend office park in Covington.