Calculate cap rates and net operating income for commercial properties in Louisiana. Compare your results against Louisiana's secondary market benchmarks sourced from CBRE H2 2025.
Louisiana's CRE is shaped by energy (oil and gas), port activity (Port of New Orleans, Port of South Louisiana — the largest by tonnage in the US), and petrochemical manufacturing. Hurricane risk is a significant underwriting factor that impacts insurance costs and cap rates. New Orleans has a unique tourism-driven retail and hospitality market.
| Property Type | Typical Low % | Typical High % |
|---|---|---|
| Multifamily | 6.0% | 8.0% |
| Industrial | 6.0% | 8.5% |
| Retail | 6.5% | 8.5% |
| Office | 7.0% | 9.5% |
Benchmarks sourced from CBRE H2 2025 Cap Rate Survey, JP Morgan, Matthews, and Cushman & Wakefield market data. Ranges represent typical stabilized assets — actual rates vary by asset quality, location, and market conditions.
Louisiana cap rates range from 6.0–8.0% for multifamily, 6.0–8.5% for industrial, 6.5–8.5% for retail, and 7.0–9.5% for office. Hurricane risk and elevated insurance costs are factored into underwriting and contribute to higher cap rates versus comparable markets without weather risk.
Hurricane exposure is a critical underwriting factor for Louisiana CRE. Insurance costs have increased substantially since Hurricane Ida (2021), and some insurers have reduced coverage availability. Investors must model elevated operating expenses due to insurance premiums, and exit cap rates tend to be wider than comparable non-hurricane-risk markets to compensate for this risk.
Louisiana's industrial market is anchored by the Port of South Louisiana (largest US port by tonnage), petrochemical and LNG export facilities, and energy sector infrastructure. The I-10 corridor between Baton Rouge and New Orleans is particularly active for industrial investment tied to chemical production and port activity.
This tool is for informational and educational reference only and does not constitute real estate investment advice. Cap rate benchmarks are estimates based on published industry surveys and may not reflect current conditions in your specific market, submarket, or asset class. Actual cap rates vary significantly based on property condition, location, tenant quality, lease terms, and local market dynamics. Always consult a licensed commercial real estate broker, appraiser, or investment advisor before making real estate investment decisions.