In the New Orleans retail market, the approval and permitting process is becoming increasingly difficult due to special interest group demands and stricter governmental requirements. According to Gary Tilley, vice president of Stirling Properties’ commercial brokerage division in Covington, Louisiana, most new retail is heavily credit-driven — either freestanding or multi-tenanted properties with national credit.

The majority of development is taking place in the bedroom communities of the Northshore (Slidell and Mandeville/Covington) and the Westbank. “This is due to the availability of land, income levels and demand for better retail,” says Tilley. Some of the more active retail developers in the area are Stirling Properties and Weingarten Realty.

The redevelopment of Clearview Mall at the intersection of Clearview Parkway and Veterans Boulevard has attracted several major tenants, including Target, Palace 12 and Bed Bath & Beyond, as well as other small shop national tenants. This redevelopment has completely rejuvenated this property and area of the market. Additionally, new Target-anchored centers in Slidell, Covington and the Westbank have helped to upgrade and strengthen the retail in those submarkets. Target is new to the New Orleans market. Other retailers new to the area are Ross Dress For Less, Best Buy and Belk.

The vacancy rate for regional malls is 14 percent; community centers, 6 percent; and neighborhood centers, 12 percent.


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