re: Shell to move NOLA offices to River District

Fox 8: "Real Estate Experts call move of two big businesses a devastating blow to the CBD"

Commercial real estate experts said two major companies in New Orleans moving out of the tallest building in the state would be a devastating blow to the CBD.

“It’s just hard to see the buildings be so empty and all the large corporations and businesses pulling out. It’s not helping everyone that’s staying,” said Paul Tufaro, owner of Empire State Delicatessen.

Paul Tufaro said his saving grace is delivery through third-party apps.

“Things have been on the steady decline since the pandemic starting since everything’s been moving to remote. It’s been one of those situations where we’re seeing a lot more businesses go than arrive, so it is causing a strain on small businesses down this way,” Tufaro said.

Real Estate Analyst Arthur Sterbcow said he doesn’t foresee any large businesses of the same size move into the region.

“Anything’s possible. But we have not been really attractive. Unfortunately, our tax laws are not as competitive,” Sterbcow said.

Sterbcow said it’ll impact property value for surrounding landlords.

He said there are many reasons people are moving out of downtown.

They need more or less space, a different floorplan, cost plays a big roll and so does crime.

Sterbcow told Fox 8 no matter where companies go, they’re faced with already high and rising commercial insurance rates.

“Just scratching their heads that they’re absolutely having a real tough time getting renewals on their, on their office, and retail spaces,” Sterbcow said.