By: Andrew Valenti, Reporter June 9, 2021
The Stables under construction in 2020. Photo courtesy Inhab Group
A former storage space for French Quarter horse carriages in the Lower Garden District that has been converted to offices and retail is nearly fully leased.
According to a news release, “The Stables,” a group of four low-rise buildings, is three quarters leased. The developer, Inhab Group, plans to begin work on the fourth and final phase of the project in the coming months, with an expected completion date next year.
The first building, located at 1222 Annunciation St., is a preexisting structure that was rehabilitated last year and now houses a law firm in the roughly 2,500 square-foot space. The second building, located at 1229 Saint Thomas St., opened last September and is now home to architecture and interior design firm Farouki Farouki and Inhab Group’s offices. The structure also has a co-working space and event space which includes roll-up doors with access to a common area courtyard.
The third building, at 1235 Saint Thomas St., is slated for completion in the fall. San Francisco-based tech firm Taulia will occupy the 2,400 square-foot space on the second floor. A wine bar called The Tell Me Bar and a local landscape architecture firm will move in on the first floor.
The fourth building, at 1239 Saint Thomas St., will offer 3,200 square feet. SVN | Urban Properties agent Henry Shortess, the listing agent for the development, said a retail operator has signed a letter of intent to occupy the ground floor. Shortess declined to provide the name of the tenant but said it would be a seafood restaurant concept. The remaining 1,700 square feet is still available for lease on the second floor, he said.
Shortess said it was initially difficult to find retailers because they wanted additional clarity regarding the city and state’s COVID-19 mandates and capacity restrictions. Now that most of those have been lifted, potential tenants felt more comfortable moving forward with their plans.
“That was a process that played out for the better part of a year,” he said. “It was challenging for many operators to hone in on a certain date where they could be open or what the operating capacity could be. I think that turned into more of a wait-and-see game.”
Rental rates are on the higher side at The Stables, at $28 per square foot compared to the Central Business District where 15 Class A towers averaged $19.55 per square foot in 2020. Rates for the downtown market’s 11 non-Class A buildings averaged $16.44 per square foot, according to a year-end report from Corporate Realty.
But many experts believe some office tenants are either looking for low-rise space that has free parking or downsizing because of ongoing concerns over the pandemic and realizing employees can still be productive while working from home, leading to a hybrid model. The Stables offer more than 30 complimentary off-street parking spots.
According to a report by Forbes in April, 29% of business leaders believe three days a week in the office is the ideal model moving forward, and 20% feel that one or two days is acceptable as of March. As of January, 83% of companies felt that working from home was successful, up 10% from June 2020, the report said.
“It’s probable that the days of casual co-working and spending nearly all your waking minutes at the office will be in the past for most of us,” the article said. “In the future, we’re likely to see some of the most important aspects of office culture return, combined with the continued success of remote working.”
