NEW ORLEANS -- At the corner of Annunciation and John Churchill Chase, artist renderings show what was intended to become a majestic new residential tower
But the plans haven't materialized, and the space is being used as a parking lot for a nearby restaurant.
The lack of progress with the Tracage project is an example of a broader problem seen in downtown New Orleans, as the national economic struggles put a pinch on the condo market.
"It's been a couple year lull, at least, now," said Kurt Weigle, president of the Downtown Development District.
Weigle said he believes things are looking up though. He said interest in downtown living keeps growing in New Orleans, and while the condo market may have suffered recently, he said it doesn't tell the whole story.
"The condo market has been a little soft over the last year,” Weigle said. “Good news for us, which is not the same for the rest of the country, is the apartment market has been very strong here. We still are seeing interest in financiers, financing projects here on the rental side, and that's very different than other parts of the country."
Weigle said there are now 3,000 residential units in Downtown New Orleans, with an estimated residential population of 5,000. That's more than double the number of people living downtown just 10 years ago.
Weigle said rental occupancy is at 95 percent.
Downtown realtor Nic Nesbit points out, the inventory keeps growing for rentals -- from new developments like the project at the corner of Poydras and O'Keefe, to condo units being temporarily converted.
"What's happened is, people need to hold onto their condos, because they can't get the prices they expected to get, and as long as they can rent them, they're not gonna sell them," Nesbit said.
But as the economy turns around, they will, he said. That would revitalize the market for property owners and realtors.
Downtown Development District officials believe new construction will continue as demand grows.
"The more units we build, the more retail and other sorts of services that supports. And that makes downtown amenity-rich, makes it a much better living environment for the next wave," Weigle said.
