<body><div><figure><img src="https://img.particlenews.com/image.php?type=thumbnail_580x000&amp;url=1zoh0d_1DTxz06R00" alt="https://img.particlenews.com/image.php?url=1zoh0d_1DTxz06R00" width="1280" height="853" ><figcaption>Downtown Development Pipeline Holds at $1.1B. Getty image.</figcaption></figure><p>NEW ORLEANS – Downtown New Orleans continued to post gains across several key sectors during the second quarter of 2026, with rising visitation, steady office leasing, continued residential demand and a development pipeline exceeding $1 billion helping offset softer retail performance.</p><p>According to the Downtown Development District’s second-quarter market report, Downtown welcomed 9.8 million visits during the quarter, a 5.6% increase over the same period last year, supporting continued growth in the area’s tourism and hospitality economy.</p><p>At the same time, approximately $1.1 billion in active development projects remained underway or in planning, reflecting continued investment in residential, office, hotel and institutional projects throughout Downtown.</p><p>“The second-quarter data shows that Downtown continues to gain strength. While some sectors face the same headwinds seen in cities across the country, we’re encouraged by continued growth in visitation, a strong development pipeline, and steady leasing activity that reflects long-term confidence in Downtown New Orleans,” said Seth Knudsen President &amp; CEO Downtown Development District.</p><h2>Development Pipeline Tops $1 Billion</h2><p>The New Orleans DDD reported 26 active development projects representing approximately $1.1 billion in investment across projects under construction, entitled or seeking entitlement.</p><p>Major announcements during the quarter included Tulane University’s decision to become owner and lead developer of the former Charity Hospital redevelopment, the opening of The Shop SOMA coworking space and continued expansion by technology companies.</p><p>“The development pipeline remains one of the strongest indicators of long-term confidence in the Downtown market,” said Rene Pastorek, chief economic development officer for the Downtown Development District. “With approximately $1.1 billion in projects under construction or moving through the entitlement process, we’re continuing to see meaningful investment across residential, office, hotel and institutional development.”</p><h2>Office and Residential Markets Hold Steady</h2><p>The office market remained largely unchanged during the quarter, with overall vacancy holding at 12.1% and nine office leases totaling approximately 42,000 square feet completed.</p><p>Class A office vacancy increased from 18.2% to 19.2%, while asking rents edged lower, reflecting continued competition for higher-end office space.</p><p>The residential market remained stable, with average apartment rents increasing 1.9% to $1,966 per month while vacancy held steady at 9.3%. The report said the figures reflect continued demand for Downtown living.</p><h2>Tourism Continues to Improve</h2><p>Hotel performance also strengthened compared with a year earlier.</p><p>Average daily room rates increased 3.2% to $192.69, while revenue per available room (RevPAR) rose 4.8%. Average occupancy increased slightly to 63.9%, supported by continued growth in visitation to the district.</p><p>“Continued growth in visitation and hotel performance reflects Downtown’s role as the region’s economic and cultural center. Increased foot traffic supports restaurants, retailers, attractions, and employers alike,” said Pastorek.</p><h2>Retail Mixed</h2><p>Retail remained the weakest segment of the market with retail vacancy increaseing from 6.6% to 7.9% during the quarter, although average asking rents rose 3.5% to $24.75 per square foot. One new retail lease at 1029 Oretha Castle Haley Blvd. on the edge of the district totaling approximately 2,000 square feet was signed during the quarter.</p><p>In June, the New Orleans DDD launched its “Summer Starts Downtown” marketing campaign, partnering with more than 50 businesses to encourage spending and increase foot traffic during the traditionally slower summer months.</p><p>“Summer can be a challenging season for many local businesses, particularly in the hospitality and retail sectors,” said Seth Knudsen, president and CEO of the Downtown Development District. “This campaign is about creating momentum for Downtown while giving businesses access to large-scale marketing resources and exposure that many small businesses may not otherwise have on their own.”</p><p>The Activate Downtown Grant Program provides matching grants of up to $20,000 for tenant improvements to help activate long-vacant ground-floor retail spaces that have been vacant for at least one year.</p></div></body>

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NEW ORLEANS – Downtown New Orleans continued to post gains across several key sectors during the second quarter of 2026, with rising visitation, steady office leasing, continued residential demand and a development pipeline exceeding $1 billion helping offset softer retail performance. According to the Downtown Development District’s second-quarter market...

Downtown Development Pipeline Holds at $1.1B

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NEW ORLEANS – Downtown New Orleans continued to post gains across several key sectors during the second quarter of 2026, with rising visitation, steady off

Downtown Development Pipeline Holds at $1.1B

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