Posted 3/20/2024, 6:00:00 PM
New Orleans Faces $400M Downtown 'Debt Bomb' as Office Loans Come Due and Tenants Depart
- New Orleans' downtown office market faces a $400 million "debt bomb" as loans on 8 of the 15 largest skyscrapers mature by 2026.
- The 39-story Energy Centre building is already delinquent after its $56.5 million mortgage came due last October.
- Urban office delinquency rates have surged nationwide due to remote work trends and rising costs, hurting downtown "trophy assets".
- Several New Orleans towers set to lose big tenants like Shell Oil as leases expire, while competing for a shrinking tenant pool.
- Some buildings converting to hotels or apartments have eased the supply burden, but the market still faces "serious winners and losers".