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re: New Orleans gets a lead story in Daily Mail

Posted on 11/2/25 at 3:20 pm to
Posted by DandyPimp
New Orleans
Member since Jan 2007
1118 posts
Posted on 11/2/25 at 3:20 pm to
There is actually much more nuance to the story than the article portrayed. It’s much more of issues with the borrower Hertz than the buildings themselves. Hertz was a high margin player that used CMBS debt and mezzanine financing in order to scale their portfolio nationally. Bad strategy in this environment.

400 Poydras is at 85% occupancy and NOI of the property is higher today than when the loan was originated. Energy Centre was at 90% occupancy at maturity.

Hancock Whitney is a real mess due to the Shell departure in 2027. The city / state supporting the move to the River District and out of the CBD is a head scratcher. They will be on an island with no close amenities as the River District project is struggling.

Not saying market is great but better buildings are doing well. Overall occupancy hurt by 4 buildings that are struggling.
Posted by LSUSkip
Central, LA
Member since Jul 2012
24717 posts
Posted on 11/2/25 at 3:44 pm to
If it elected just one decent Republican mayor for a couple of terms, that city would be on it's way again.
Posted by SlidellCajun
Slidell la
Member since May 2019
16401 posts
Posted on 11/2/25 at 4:06 pm to
Nola has a fundamental problem with high office space to resident ratio. The space is geared for a larger city and we don’t have that anymore. That won’t change anytime soon. There’s just going to be high vacancy.

The remedy to remaining empty space is to lure business in to lease space. Big ask. Any business looking to move a company to Nola and needs any of this office space is going to come take a look at the space. Broadly speaking, They want quality office space, good parking, safe entrance and exit.
Otherwise, beyond the office environs, in general, they want housing that can be both affordable and safe, Good schools, driveable streets, educated workforce, clean streets, and maybe a favorable judicial environment.

Companies generally have options. They can choose another location and now days, they can just avoid office space completely and go the remote route.

New Orleans simply doesn’t meet a lot of what a company wants with the safety thing being a glaring problem. I’m not going to open an office in Nola and ask my employees to go to an office that might put them in jeopardy.
Walk around the streets and smell the weed, see the homeless, grafitti, loud car music, and trash and it becomes clear why it’s a tough ask for business to come here.

There are fundamental issues that won’t be fixed by city services but the safety thing can and needs to be addressed with a heavy hand on policing. No one has time for social programs to work. We need old fashioned police presence. Additionally, Clean up everywhere. Stop the sidewalk merchants. Fix the infrastructure.

If all of this happens, it’ll still be years before business will come take office space. We don’t have years.
Posted by rltiger
Metairie
Member since Oct 2004
2434 posts
Posted on 11/3/25 at 10:50 am to
quote:

New Orleans doesn't need room. It's run exceedingly poorly, they can't pick up the trash either literally or metaphorically. Big and little business has been leaving for Mississippi, Houston, Dallas, etc... since my parents were children. They don't need room when everybody is leaving.


They needed room in the 60’s-70’s. There was no room to expand. They built the causeway to help with expansion, but by that time it was too little too late. Even with northshore expansion the problem was not fixable, there was no way to have 2 million people living here. Dallas and Houston kept expanding, Mississippi is agricultural, the only thing they picked up from NOLA is Whitney Bank when Hancock merged.

No new neighborhoods, no infrastructure to move people around, everyone on top of each other. That is the issue. Gentrification of Marigny, upper 9, and Uptown is slowly moving out the uneducated government dependents and will go along way to cleaning up the current mess. With the shift away from office buildings to shared workspace and work from home, NOLA could pivot and attract even more professionals to the city.
Posted by Penrod
Member since Jan 2011
55508 posts
Posted on 11/3/25 at 11:10 am to
quote:

New Orleans issue was no room for expansion and growth, so businesses left.

No sir. There was enough room in, and around, New Orleans for 10 million more people. Manhattan is about 3 miles by 9 miles, and it has 4 million people there by day and 2 million by night. You could easily drop five Manhattans in Kenner, Metairie and New Orleans East. Space was not the problem; it was corrupt politics.
Posted by Y.A. Tittle
Member since Sep 2003
110942 posts
Posted on 11/3/25 at 11:14 am to
quote:

You could easily drop five Manhattans in Kenner, Metairie and New Orleans East. Space was not the problem; it was corrupt politics.


Does basically every resident of Manhattan have to evauate and leave for about a week every 3-4 years or so?

That's proably as a big a deal that will hamper any attempt to foster New Orleans as a place to "do business" for outside companies as anything. The corruption is just the icing on top.
Posted by Smeg
Member since Aug 2018
15530 posts
Posted on 11/3/25 at 11:23 am to
It's all very simple. Most people don't want to pay to live and work in a shithole.

There's nothing more complicated about the problem than this simple fact.
Posted by Penrod
Member since Jan 2011
55508 posts
Posted on 11/3/25 at 11:23 am to
quote:

Does basically every resident of Manhattan have to evauate and leave for about a week every 3-4 years or so?

No, but if New Orleans had the tax base and leadership that NYC has, we wouldn’t either. We’d have giant locks in The Rigolets, higher levees, pumps that are adequate, redundant and reliable, etc.
Posted by Harry Boutte
Louisiana
Member since Oct 2024
3996 posts
Posted on 11/3/25 at 12:10 pm to
quote:

I grew up in NOLA, you could see the decline in the 70's, started with Moon Landrieu, corrupt as hell

I grew up in New Orleans in the 70s as well, it wasn't just the political corruption that drove people out, but the mob ran the city until the 80s. That's when the corruption went from private, the mob, to public, the city government. I tried moving back there in the early 2000s, but the city corruption just made it too expensive to do business.

One thing I remember that really stands out. When I bought a house, I had to have flood insurance,okay I get it - even though the house I bought didn't flood after Katrina. But here's the catch, I had to file the property transfer with the city, and they charged me $1 per page. Okay, I thought. But then I realized I had to include my flood insurance policy of 100 or so pages. This was a standard flood insurance policy that just about everyone in the city had, and I couldn't just file proof of insurance, I had to file the whole policy - for a dollar a page. Filing cost over $150. When I bought a house two years earlier in Baton Rouge, it only cost about $25 to file. Every time I turned around, the city was trying to chisel more money off of me.

And you know what? I would've been fine with those charges if it led to a well-run city, with services I could take advantage of. Nope.
Posted by tigersmanager
Member since Jun 2010
11232 posts
Posted on 11/3/25 at 12:38 pm to
democrats ruin everything they touch
Posted by Penrod
Member since Jan 2011
55508 posts
Posted on 11/3/25 at 1:04 pm to
quote:

And you know what? I would've been fine with those charges if it led to a well-run city, with services I could take advantage of. Nope.

Yeah, that’s the nub of it. I always tell people from elsewhere that while they have corruption in Chicago, New York and Atlanta, it comes with government that at least runs the city okay. In New orleans it comes with nothing else.
Posted by JimEverett
Member since May 2020
2402 posts
Posted on 11/3/25 at 1:12 pm to
Two big things stick out to me that explain the decline of New Orleans

1 - the city/state did not do enough to capitalize on the geographic position at the onset of globalization. New Orleans was the Gateway to the Americas up until the 60s/70s but by that time other cities had invested heavily into ports and the industrial networks that make a lot of money. Houston, Dallas, Atlanta, Tampa, and Miami all surpassed New Orleans over the last 60 or so years. That is high order malpractice by political and business leaders given the geography of Louisiana.

2 - Compare what Texas did with oil money, especially in the 70s. While Louisiana partied, Texas partied but also invested - particularly in higher ed. That has paid off for Texas. Louisiana instead thought tourism would save the city after the oil bust - that is Edwin Edwards lasting legacy.

It is hard to imagine New Orleans would be the level of a Houston or Atlanta these days - there were a lot of challenges old Deep South cities faced after WW2. But it shouldn't be even close to as bad off as it has become.
Posted by L.A.
The Mojave Desert
Member since Aug 2003
66643 posts
Posted on 11/3/25 at 1:21 pm to
The building in the upper right hand corner of this photo, the one with the steeple looking thing on top of it. What building is that?


Posted by slidingstop
Member since Jan 2025
2295 posts
Posted on 11/3/25 at 1:25 pm to

But the culture, yall. You can drink on da street in the city that care forgot. Yeah, baby.
Posted by Y.A. Tittle
Member since Sep 2003
110942 posts
Posted on 11/3/25 at 1:26 pm to
quote:

The building in the upper right hand corner of this photo, the one with the steeple looking thing on top of it. What building is that?



St. John the Baptist Church.
Posted by SludgeFactory
Middle of Nowhere
Member since Jun 2025
3836 posts
Posted on 11/3/25 at 1:28 pm to
Keep voting Democrat!! You are so damn close NOLA!!
Posted by GumboPot
Member since Mar 2009
140573 posts
Posted on 11/3/25 at 1:29 pm to
quote:

and your brain damaged governor is more interested in LSU football rather than correcting the crime problems in all his cities


Why should Landry give a shite about NOLA? The people that live in New Orleans do not want a safe and beautiful city. They have no pride. It starts from the bottom. Most everyone litters. Very little volunteerism to make the city better. Crime is rampant. Homeless everywhere. People pissing and shitting on Canal Street. Corruption is through the roof.

It's a disgusting place right now.
Posted by GumboPot
Member since Mar 2009
140573 posts
Posted on 11/3/25 at 1:33 pm to
quote:

Two big things stick out to me that explain the decline of New Orleans

1 - the city/state did not do enough to capitalize on the geographic position at the onset of globalization. New Orleans was the Gateway to the Americas up until the 60s/70s but by that time other cities had invested heavily into ports and the industrial networks that make a lot of money. Houston, Dallas, Atlanta, Tampa, and Miami all surpassed New Orleans over the last 60 or so years. That is high order malpractice by political and business leaders given the geography of Louisiana.

2 - Compare what Texas did with oil money, especially in the 70s. While Louisiana partied, Texas partied but also invested - particularly in higher ed. That has paid off for Texas. Louisiana instead thought tourism would save the city after the oil bust - that is Edwin Edwards lasting legacy.



Edwards and NOLA politicians required steep campaign contributions for O&G companies to do business in NOLA. The O&G companies kindly said frick you and moved to Houston where they could do business with people of higher moral character. It was a really easy decision.
Posted by L.A.
The Mojave Desert
Member since Aug 2003
66643 posts
Posted on 11/3/25 at 1:36 pm to
Thank you

Posted by rltiger
Metairie
Member since Oct 2004
2434 posts
Posted on 11/3/25 at 1:36 pm to
quote:

No sir. There was enough room in, and around, New Orleans for 10 million more people. Manhattan is about 3 miles by 9 miles, and it has 4 million people there by day and 2 million by night. You could easily drop five Manhattans in Kenner, Metairie and New Orleans East. Space was not the problem; it was corrupt politics.


The water table in NOLA is 2.5 feet and most is below sea level. Manhattan is solid rock and has subways and high rises. New Orleans is surrounded by water and swamp. There was never enough room, environment, or infrastructure to grow. The corruption in the top three cities, NYC, Chicago, and Los Angeles are as bad or worse and have been for 100 years. It was not corrupt politics that did NOLA in.
Between 1830 and 1840, NOLA was the 3rd largest city in the US, only NYC and Baltimore had more people. By 1960 is was still the 15th largest city. Now the large cities are magnets for people on government subsidies. NOLA has a chance to change things and make itself desirable as these large cities get worse.
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