While Katrina reduced the New Orleans office market by nearly 8% to just under 9 million square feet, this has resulted in higher lease rates and fewer vacancies. REIS, Inc. reports that as supply shrinks, demand is increasing. Approximately 128,000 square feet of space was absorbed in 2Q and this has bumped the N.O. occupancy rate from 86% to 90%. Rental rates increased to $16.23 during 2Q, from $15.46 per SF pre-Katrina rates -- a strong testimony for the resilience of the office sector!