New construction, or existing home? It's not just a question for home buyers, it's something the city of New Orleans should consider, too, says a local banking leader.
New Orleans has agreed to swap land with the state in order to build a new city hall on Duncan Plaza, not far from the current city hall. But is new construction the way to go?
Gulf Coast Bank & Trust President Guy Williams says the city might be able to get a better deal -- much better -- as demand for downtown office space falls.
"The cost of building a new city hall as proposed, you could buy four of the high-rises on Poydras St. for that amount," Williams told WWL's Newell Normand.
Williams points out that there has already been a sale this year of a downtown high rise, as many buildings deal with high vacancy rates from companies that went remote during the pandemic.
"We've already seen one really distressed sale: the DXC building, which is one of the nicer buildings on Poydras St., sold at a really distressed price," said Williams.
William, says the pandemic's emptying of office buildings has some high rise owners looking to sell, and it's a buyer's market.
Estimates are that it could cost $100 million dollars on a new city hall, with existing skyscrapers going for less then $20 million.
"It would be more financially sound to take an existing building."
A new city hall would also take years to build.
