Office Building with
For Sale
$1,250,000
3420 CANAL Street, New Orleans, LA 70119
Office building with off-street parking and commercial zoning.
Property Size2,963 SF
Lot Size0.11 Acres
Price / SF$421.87
Days on Market528
Property Features for 3420 CANAL Street
General Information
Standard status
Active
Size
2,963 SF
Lot size
0.11 Acres
Property subtype
Commercial/Industrial
Building Details
Year Built
1900
Listing Agency:
Southeast Commercial of MS, LLC
(504) 339-2136
Listed By:
Matthew Eaton · License #000072493
(504) 339-2136
Source:
Exitrealty
Added: Feb 26, 2025
Changed: Aug 8
Last Checked: Apr 6 at 4:00AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Southeast Commercial of MS, LLC
Investment Insights
Based on property information with market context.
The properties at 3420 and 3426 Canal Street are available for purchase together, offering an office building and off-street parking. The building at 3426 Canal Street is a 2,963 square foot office building situated on a 4,800 square foot lot. It features a full sprinkler system, a terracotta roof installed after Hurricane Katrina, a new sewerage line, and ADA accessibility features. The adjacent property at 3420 Canal Street includes a 1,600 square foot building in shell condition. This building was raised and shored after Hurricane Katrina, and a new roof was added after Hurricane Ida. Currently utilized for storage, the property also includes a 1,100 square foot clear span storage shed. The building at 3420 Canal could be demolished, and the land could be converted into off-street parking. Both properties are zoned HU-MU, providing flexibility for various commercial applications. There are multiple purchasing options available, including purchasing the properties separately, purchasing 3420-26 Canal as a package, or purchasing the entire Canal Street portfolio, which includes 3420, 3426, 3432 Canal Street, and 118, 124 S. Clark Street.
Key Highlights
- HU‑MU zoning provides flexibility for various commercial applications.
- 2,963 sq ft office building (3426 Canal) with recent upgrades including a full sprinkler system, terracotta roof (post‑Katrina), new sewerage line, and ADA accessibility.
- Opportunity to purchase properties separately, as a package (3420‑26 Canal), or as part of a larger Canal Street portfolio.
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$44,001
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
3.52%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$880,020
$880.0K
Cap Rate 7%
$628,586
$628.6K
Cap Rate 9%
$488,900
$488.9K
Market Conditions
NOI Build-Up for 2,963 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$71.1K $24.00/SF
− Vacancy
−$12.4K −$4.20/SF
EGI
$58.7K $19.80/SF
− OpEx
−$14.7K −$4.95/SF
NOI
$44.0K $14.85/SF
Area
ZIP 70119
Vacancy
17.50%
Lease Rate
$24.00 /SF/Yr
Expense Ratio
25.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$880,020
Cap Rate 7%
$628,586
Cap Rate 9%
$488,900
Alternative Uses
Best Use
Office B
$628.6K
$550.0K – $733.4K
NOI $44,001 @ 7.0% cap · market cap 3.52%
Second Best
Warehouse
$340.4K
$297.9K – $397.2K
NOI $23,831 @ 7.0% cap · market cap 1.91%
Theoretical Best
Office A
$775.3K
$678.4K – $904.6K
NOI $54,273 @ 7.0% cap · market cap 4.34%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
7,977
Businesses Nearby
Explore this area
Business Placement
Demographics for 70119, LA
38,048
Population
21,595
Households
1.8
Avg Household Size
37
Median Age
47%
College-Educated
89%
High-School Grad
4.5 sq mi
ZIP Area
8,455
Density / Sq Mi
$50,854
Median Household Income
$44,278
Median Earnings
$1,298
Median Rent
$359,300
Median Home Value
Market
Vacancy Rate% for Office in New Orleans, LA
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Office building - Office building with off-street parking and commercial zoning.
Where is this office building located?
The property is located at 3420 CANAL Street New Orleans, LA.
What is the asking price?
The asking price for this property is $1,250,000.
What are key features of this property?
This property features: HU‑MU zoning provides flexibility for various commercial applications.; 2,963 sq ft office building (3426 Canal) with recent upgrades including a full sprinkler system, terracotta roof (post‑Katrina), new sewerage line, and ADA accessibility.; Opportunity to purchase properties separately, as a package (3420‑26 Canal), or as part of a larger Canal Street portfolio.
