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| New Orleans Top 10 Employers | Employer | Industry | Employees |
|---|---|---|
| Northrup Grumman Avondale | Ship Building | 6,400 |
| Ochsner Medical Institutions | Health Care System | 6,095 |
| Tulane University | Research University | 5,492 |
| Tenet Health System | Healthcare system | 5,431 |
| HCA Healthcare | Health Care System | 3,089 |
| Hibernia National Bank | Banking | 2,954 |
| Harrah’s New Orleans | Gaming | 2,900 |
| Entergy Corporation | Intnl. Utility Provider | 2,500 |
| Bellsouth | Telecom | 2,400 |
| Lockheed Martin | Aerospace | 2,269 |
However, the contraction of Oil/Gas and related industries since 2000 has precipitated a decline of total employment to 613,200 in 2002, a trend that has stabilized in 2003 with overall employment moving up to and exceeding 615,000. Underlying the outlook for the regions growth over the next four years is a commitment by the business and political leadership to expand the economy by a net increase of 30,000 jobs over the next few years and to an employment level approaching 675,000 by 2009.
Noted above, the New Orleans economy has diversified in recent years away from its former dependence on Oil & Gas. The top six sectors of the New Orleans economy in terms of employment are: Oil & Gas (17%), Tourism/Convention (16%), Business and Professional Services (11%), Arts & Entertainment (10%), Shipbuilding/Aerospace (9%), Maritime/Port (8%), and other services (29%).
The Port of New Orleans and the maritime industry are crucial parts of the New Orleans area economy generating over $4.9 billion in total spending per year. The Port has deep-water access and is located at the confluence of two inland waterway systems in the Mississippi River and the Gulf Intercoastal waterway. The combined tonnage of public and private port terminals in the area exceeds that of all other U.S. ports making the Port of New Orleans the largest in the world. In 2001, New Orleans regional ports handled over 358 million tons of domestic and international cargo equating to 15% of the country’s waterborne cargo. Ports in the New Orleans area increased total tonnage by 18% from 1991 to 2001. Reflecting the regions importance in terms of international trade, foreign cargo tonnage increased by over 26% during the same period.
Recent changes in maritime technology have created numerous new port-related jobs. Many of these new jobs are related to data processing of international transactions and are in high paying areas such as banking, legal, insurance and freight forwarding. Hundreds of firms are located in the New Orleans area or in Louisiana simply because of the existence of the Port. These firms include large steamship companies, firms providing longshoremen services, railroads, tugboat and barge companies that ship goods to and from the Port, freight forwarding companies, maritime law firms, and insurance companies that write marine policies. Direct users of the port include warehouses that store goods for export or import and manufacturing firms that locate in Louisiana because the River and the Port are crucial for the transportation of goods out of the country or to other regions of the United States. In order to keep pace with increasing demands and to position the industry for future growth, the Port of New Orleans recently completed a five-year, $200 million capital improvement program.
One of the most significant capital investments ever to be made in the marine transportation section, The Millennium Port project is planned for development during the next decade by the State of Louisiana with the participation of the Port of New Orleans.
Requiring an investment of $2.7 billion, The Millennium Port is expected to become a “hub” and preferred port-of-call on the U. S. Gulf Coast. It would become a principal north-south corridor gateway to Latin American with an expected economic impact of $3.4 billion and approximately 44,000 jobs by 2020.
The Oil & Gas sector of the New Orleans economy includes on-shore and off-shore oil drilling & exploration, natural gas exploration and production, and the manufacturing of petroleum-based chemicals. As a result of decreased worldwide oil prices and increased global competition, the Oil & Gas industry in the New Orleans, and the United States in general, underwent significant reorganization and downsizing over the past ten years. As a result of streamlined operations and new exploration technology, however, exploration, production, refining and transportation operation in the southeast coastal region has experienced strong growth.
Since 1992, Louisiana’s share of national crude oil production has continued to improve. In 1992 Louisiana was responsible for 16.02% of national production. By 2002 Louisiana ranked first in the United States, ahead of Alaska and Texas, accounting for over 26.63% of total U.S. production. In terms of natural gas production, Louisiana ranked second in the nation, behind only Texas, producing 14.7 million cubic feet per day. Louisiana natural gas production accounted for 27% of total U.S. production.
The sector of the Oil & Gas industry that is most responsible for the dramatic resurgence of the industry in recent years is the exploration and production of off-shore oil, especially in the deep water of the Gulf of Mexico. As a result of new technologies that make off-shore exploration more profitable, such as 3-D seismic imaging, investment in off-shore exploration by U.S. and foreign companies has increased dramatically. Because of its location and existing infrastructure, New Orleans has become a focal point of this industry boom. Approximately 40% of Louisiana oil refineries and more than 50% of its oil refining capacity are in the New Orleans region. Louisiana’s refining capacity ranks 2nd nationally with more than 16% of the U. S. capacity.
Given its central location, historical significance and unique cultural mix, New Orleans has always been among the most favored tourist destinations in the United States. Perhaps even more impressive then the city’s long-term popularity has been its recent performance. In the past twenty years, the tourism industry in the New Orleans region more than doubled. For 1990 to 2000, the number of visitors to the region increased 26% from 8.4 million to 10.6 million. Since September 11, 2001 that number has only decreased slightly by 7% to 9.85 million. Of more direct consequence to the local economy is visitor spending which has also dramatically increased in recent years. In 2001, it is estimated that visitors to the city spent over $5.1 billion.
One of the largest components of visitors to New Orleans is the Convention business. Thanks in large part to the Ernest N. Morial Convention Center, one of the world’s largest and most technologically advanced facilities, the number of conventions choosing to meet in New Orleans has skyrocketed in recent years. Between 1993 and 1996, the number of conventions increased 114% from 1,448 to 3,108. The convention sector of the Tourism industry should continue to improve dramatically in coming years as the fourth and final phase of the convention center gets underway. The fourth phase expansion adds 524,000 square feet of exhibition space 100,000 square feet of meeting rooms and a 60,000 square foot ballroom, at a cost of $275 million. The current Convention Center stretches 3,260 feet along the Riverfront, contains 1.1 million square feet, and is the fourth largest convention center in the United States. Out of town attendees for the convention center are projected to increase from 1,400,000 in 2002 to 1,750,000 by the year 2006.
An additional source of tourism growth is riverboat gaming and the introduction of land-based gaming to the city. Thus far, riverboat gaming has created 2,700 direct new jobs via three riverboats that currently operate in the city. The State of Louisiana and the City of New Orleans have a single land based casino on Canal Street near the Riverfront. The facility is operated by Harrah’s, contains 200,000 square feet of space and employs 2,900 people. The casino opened in November 1999 with monthly revenue of $16,000,000 increasing to $23,000,000 by February 2003.
Other major tourist attractions include the world famous French Quarter, the Audubon Zoo, the Aquarium of the Americas, the City’s famous restaurants and music venues. Additionally a new 20,000 seat arena recently opened next to the Louisiana Superdome. The new arena is home to the New Orleans Hornets, NBA Basketball Team, and arena football (The New Orleans VooDoo) and numerous concerts.
The New Orleans Saints of the National Football league and the Tulane University Green Wave football team play their games at the Louisiana Superdome
New Orleans is regarded as one of the most significant shipbuilding and repair centers in the United States. The area’s importance in the industry is the result of its unmatched location with regard to access and its close association with the nation’s defense industry dating back to World War II. The New Orleans shipbuilding/repair industry is estimated to have generated approximately 10% of the nation’s total output in the 1990’s. Since 1991, more than 6 billion in navy defense and private commercial contracts were awarded to area firms. Despite the reduction in defense spending nationwide over the past decade, the industry in New Orleans has flourished by diversifying into new non-defense markets such as construction, repair and modification to excursion vessels, ferries, oil tankers and commercial fleets of liners, tankers, barges and tugs.
Aerospace manufacturing in the area is centered around Lockheed-Martin’s external fuel tank assembly operations for the NASA Space Shuttle Program. The manufacturing plant is located at NASA’s Michoud Assembly Center in the eastern portion of the city. This industry generates over 2,000 jobs for the area and provides a substantial economic impact. Lockhead-Martin’s assembly facilities are expected to continue to provide the area with opportunities for significant growth as new generations of military aircraft are developed in the 21st century.
In May of 1999, the U.S. Secretary of Defense dedicated the U.S. Navy Information Technology Center, a payroll and personnel data center for the entire Navy. The Center has created nearly 6,000 jobs over the last 2 years with salaries averaging between $40,000 and $60,000 per year.
The New Orleans area boasts a strong public and private education system at all levels and is a regional center for education for the southern United States and portions of Central and South America. New Orleans is home to ten, four-year colleges and universities and two, two-year community colleges. The area is also home to nationally acclaimed post-graduate business, medical and law schools. Total 2002 Fall enrollment for the area’s colleges and universities totaled almost 85,000 students. The largest institutions in the area include the University of New Orleans with enrollment of approximately 17,300, Delgado Community College with enrollment of over 15,000 and Tulane University with enrollment approaching 13,000. Other major four-year universities in the region are Loyola University, Southern University, Southeastern University, Xavier University and Dillard University.
As a result of its central location within the southern United States and its proximity to Central and South America, New Orleans has become a significant regional healthcare center. Twenty-eight acute care hospitals with more than 6,500 staffed beds and approximately 1,800 medical and surgical specialists are based in New Orleans. The city is also home to two highly regarded medical schools (Tulane and Louisiana State University) as well as internationally renown research facilities including LSU Eye Center, the Tulane Regional Primate Center, and the General Clinical Research Center. The National Institute of Health has granted, in recent years, New Orleans area research facilities over $50 million in sponsored grants.
Three of the largest employers in the city are Tenet Healthcare Systems, Columbia/HCA, and Ochsner Medical Institutions. Five of the areas largest healthcare institutions comprise the New Orleans Regional Medical Center, which is located in the Central Business District.
Air-service for the area is provided by the Louis Armstrong International Airport which is located approximately 15 miles west of the New Orleans Central Business District. New Orleans is served by 15 domestic and international airlines and offers direct international service to Canada, Guatemala, Honduras, Mexico and El Salvador. New Orleans International Airport has experienced steady growth in airport passengers since the late 1980’s. In 2002, passenger traffic at the Airport reached 10 million, a 30% increase since 1990.
In order to keep pace with projected growth, several capital improvements have been completed and/or are now underway. The most recent capital expansion program, which entails over $633 million in improvements, includes new and extended runways, taxiways, temperature controlled air cargo facilities, a 3,500 space parking garage and access roads. The newly enlarged air cargo terminal greatly enhances the facility’s capacity to handle the rapidly growing air cargo traffic to the area. The new terminal also improves the Airport’s competitive position in attracting traffic from expanding international markets. By 2015 total airport traffic is projected to exceed 16 million passengers.
The two other airports situated in the metropolitan area are the New Orleans Lakefront Airport and the Alvin Callender Naval Air Station. The first is a full-service general aviation facility serving corporate, charter, and private aircraft, while the second serves military training and other federal agency aircraft.
Six main line railroads serve the region: Illinois Central Gulf, Kansas City Southern, Norfolk Southern, CSX Transportation, Burlington Northern Santa Fe, and Union Pacific. The New Orleans Public Belt Railroad operates as a switching carrier serving all railroads, most public wharves and more than 100 industries. Special railroad facilities include intermodal, contain/COFC, and piggyback/TOFC. Amtrak service is available to the East Coast, Midwest, and Northeast.
Interstate Highway 10 is the major traffic arterial through New Orleans and all of South Louisiana. U.S. Highways 55 and 59 are located outside the city and provide north and south transportation routes.
New Orleans is a historically rich city and is world renown for its Cajun and Creole cuisine, Dixieland jazz, the French Quarter, and Mardi Gras. The most famous is probably the French Quarter, which was founded in 1718. The 10 by 15 block area comprises the original boundaries of the City of New Orleans.
Today it is a popular tourist destination as well as an important residential area and business place. It abounds with historic structures such as St. Louis Cathedral, the Cabildo and the Pontalba Apartments (dating from 1850 and said to be the oldest apartments in North America). The Jax Brewery festival marketplace is located in the French Quarter and represents a $70 million restoration of the former Jax Brewery. It contains in excess of 245,000 square feet and now houses specialty shops and restaurants.
The newest major addition to the French Quarter is the $40 million, 16-acre Aquarium of the Americas. This consists of a 1,117,000 square foot, three-story building containing 62 tanks. Other attractions in the French Quarter include Jackson Square, the French Market, Cafe Du Monde, numerous antique shops, and, of course, Bourbon Street.
In addition, many festivals are staged throughout the year in the French Quarter and around the city including the internationally renown Jazz and Heritage Festival which attracts over 425,000 visitors per year.
Mardi Gras is a celebration held annually in New Orleans that draws people from all over the world. It is characterized by public parades, private balls, and is aptly described as “the greatest free show on earth.”
In recent years, New Orleans has added numerous attractions offering family entertainment and recreational opportunities including Six Flags Theme Park, The National D-Day Museum, The Louisiana Children’s Museum, Louisiana Nature Center, and the nationally acclaimed Audubon Zoo.
The area is very diverse with retail, general commercial, light industrial, single and multi-family developments.
Lake Forest Boulevard is an east-west roadway which connects Crowder Blvd. with Read Blvd. and runs parallel to Interstate-10. Lake Forest Boulevard continues eastward past Read Blvd. all the way to Paris Road / Interstate-310, which connects it to Chalmette, LA.
The retail development in East New Orleans began in the early 1970’s around the Plaza in Lake Forest, a ±1,200,000 square foot regional mall. This mall is situated in the southwest quadrant of Read Blvd. and Interstate-10. Over the last several years, all but one of the mall’s four anchor tenants has vacated and the property has changed ownership several times. The current owner has pledged to pump $40 million to $50 million into redevelopment, and he says “he won’t even try to restore the site to what it used to be.” Mr. Gowri Kailas, the new owner, has begun rehabilitating the property into a mixed-use mall and has several prospective new tenants.
He recently opened a newly constructed, 14 screen movie theater with stadium seating, on the perimeter of the mall property. The theater, called The Palace, is a nice addition and traffic generator for the property.
Lake Forest Boulevard runs along the south side of the mall and has a series of free standing retailers and small strip centers. Just one block past Lake Forest Blvd. on Read Blvd., sits a Pendleton Memorial Methodist Hospital, a 317 bed full service, acute care hospital. It anchors the Methodist Health Complex, which includes numerous medical office buildings, a surgery center and a cancer center. Some of the medical related businesses overflow into the Lake Forest Boulevard strip centers.
In the immediate area you also have Joe W. Brown Memorial Park, which is a large municipal park, anchored by the Audubon Louisiana Nature Center. The nature center is an 86 acre facility featuring nature trails, a planetarium and an amphitheater. Abramson High School is located just down the street on Read Blvd.
Multi-family development has been primarily concentrated along the interstate corridor. Several large apartment complexes were developed along both sides of the interstate from Morrison Road and I-10 interchange, eastward toward the Paris Road and I-10 interchange. Much of the multi-family development in East New Orleans was encouraged by favorable financing from HUD financed projects in the early to mid-1970’s, to Tax Exempt Bond Issues in the early 1980’s. Recently, tax credits and low interest rates have enticed investors to the East New Orleans apartment market for the available favorable financing. As a result many of those complexes have been renovated.
The Westbank including both Algiers and West Jefferson Parish) enjoyed a very modest growth until 1957 when the Greater new Orleans Bridge was completed. The opening of the bridge issued in an era of growth and prosperity for the Westbank (particularly Algiers) that is continuing today. Upon completion of the “Crescent City Connection: (a new sister span adjacent to the original Greater New Orleans Mississippi River Bridge) access to the Westbank was greatly enhance from the Central Business District of New Orleans. Commuting time and traffic patterns have improved immensely. The completion and opening of the additional span of the bridge have had a positive effect on the Westbank economy. General speaking, access to the JoEllen Smith from all sections the Westbank (as well as the CBD) is considered good via the Westbank Expressway and General DeGaulle Drive.
Before the turn of the century, access to the East Bank of the river (the Central business District and the French Quarter) was by ferry form Algiers Point. Algiers Point was developed with Victorian style residential and commercial improvements.
Access to the ferry at Algiers Pont was provided by General Meyer Avenue (the subject street). During this period, General Meyer developed with strip commercial improvements form the Mississippi river to Holiday Drive. The vacant tracts of land on either side of General Meyer were typically developed with small frame cottages. A small U.s. naval base is situated (just east of Algiers Point) along General Meyer Avenue. Residential and commercial growth was developed surrounding the naval base.
Beginning in 1957 with the opening of the Grater New Orleans Bridge, commercial interest along General Meyer Avenue began to decrease. General DeGaulle became the major traffic thoroughfare that provided access to the Mississippi River Bridge and the center of tall commercial and residential development. Residential development began taking place in all areas surrounding General DeGaulle Drive. Quality residential development now immediately surrounds and supports the JoEllen Smith Medial Center.
Commercial growth along General Meyer Avenue has slowed in the last 10-15 years. General Meyer Avenue now serves as a secondary neighborhood thoroughfare for the immediate area. Presently, all commercial growth is concentrated along General DeGaulle Drive with new retail growth occurring between Holiday Drive and Woodland Drive. Also, several mid-rise office-building developments have taken place in the areas immediately surrounding the General DeGaulle/Holiday Drive/Kabel Drive.
Situated at the three-way intersection of West Bend Parkway/General DeGaulle Drive/ McArthur Blvd. are three major large quality office buildings known as Timbers Office Park. One three-story facility containing 63,000 SF/NRA was constructed in 1982 (3500 General DeGaulle Drive). Another five-story structure containing 107,000 SF/NRA was also constructed in 1982. The Orleans Parish School Board occupies both of these buildings. A rear building within the park is situated on West Bend Parkway. This is a modern five-story multitenant office building containing 131,000 SF/NRA. Current asking rents for this space is $14.00 PSF/NRA. Occupancy for this building is approximately 84%. Expenses are running about $6.00 PSF. There is approximately 2.5 acres of vacant land within the Timbers Office Park. Also of major importance with regard to professional office space is WestparkI. Westpark I is improved with a six-story modern professional office building containing 108,889 SF/NRA. The building was constructed in 1983.
Average rents are reported to be around $17.50 {SF/NRA. Expenses are reported to be about $5.50 PSF/NRA with occupancy at about 86%. There are also two additional sites within the park that are designated for professional office use. There are a number of other smaller professional and medical office facilities situated along General DeGaulle Drive. Ochsner has a health clinic situated on Behrman Highway. There are other smaller medical facilities within the Algiers area typically related to elderly care.
2555 Severn Avenue, Suite 200, Metairie, LA 70002
