USA – LOUISIANA Trends and Developments Contributed by: Jeffrey P Good and Susan M Tyler, Jones Walker LLP
together with the affiliated Vue Orleans cultural attraction, continues to transform the river - front at Canal Street, representing a significant upgrade to New Orleans’ luxury hospitality and residential offerings. Infrastructure improvements Infrastructure investments supporting real estate development continue at a substantial pace. The USD1.8 billion Louisiana International Terminal port expansion in St Bernard Parish will enhance the state’s import and export capacity. This pro - ject, supported by a federal grant, represents the largest public economic development project in the state’s history and the biggest economic development grant Louisiana has ever received. Transportation improvements include the mul - tiphase widening of Interstate 10 in Baton Rouge, enhancing connectivity between Louisiana’s two largest cities. The Five Bayous Project and the Diversion Flood Control Project, with combined investments exceeding USD550 million, aim to mitigate storm-related flooding along major drainage canals and rivers in the Baton Rouge area. These flood control initiatives directly impact property values and development poten - tial in previously vulnerable areas. The Joint Infrastructure Recovery Response programme continues its work on New Orleans’ streets, sewers and water systems, with approx - imately USD2.4 billion allocated to restore dam - aged infrastructure. With over 200 projects com - pleted since 2018 at a value exceeding USD1.4 billion, this programme addresses critical infra - structure needs that support property values and development feasibility across the city. These diverse development projects underscore Louisiana’s commitment to economic growth and infrastructure improvement. For real estate
professionals, these initiatives create oppor - tunities across numerous practice areas, from project financing and land acquisition to regu - latory compliance and commercial leasing. The legal complexities inherent in these large-scale developments require specialised expertise in environmental law, tax incentives, public-private partnerships and project finance. Commercial Real Estate Market Analysis The Louisiana commercial real estate market shows varying performance across sectors and regions, with office space experiencing particu - lar challenges. Office market trends According to the 2025 Office Market Report by Corporate Realty, the Greater New Orleans office market shows remarkable stability despite national concerns about the future of office space. That study indicates that the total occu - pancy for the entire market remained relatively steady from 2023 to 2024, with Class A office space in the Central Business District maintain - ing stable occupancy with competitive rental rates. Financial market volatility has nonetheless impacted office building values, particularly for properties financed with relatively short-term, low-interest debt through commercial mortgage- backed securities. Several Class A office build - ings faced loan maturities, higher interest rates and more restrictive loan-to-value ratios, leading to ownership changes at a number of downtown
New Orleans properties. Industrial market activity
Industrial real estate continues to perform strongly, supported by manufacturing expansion and logistics demand. Notable developments include Bunge’s investment to expand its Avon -
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