A Message from Gulf States

As we close out the fourth quarter of 2025 and move into the first quarter of 2026, we want to share a combined market outlook and company update reflecting what we are seeing on the ground across Southeast Louisiana, Mississippi, and Coastal Alabama.

With offices in Covington, LA, and Fairhope, AL, Gulf States remains focused on commercial & residential real estate, commercial construction, development, project management, and long-term property management throughout the central and southern United States. As market conditions evolve, our goal is to provide clarity, stability, and execution for our clients and partners.

The Commercial Real Estate Market Is Turning a Corner

Over the past few years, commercial real estate has experienced a meaningful reset driven by rising interest rates, shifting capital markets, changes in tenant behavior, and an unpredictable political landscape. As we move into 2026, many of those pressures and concerns have begun to ease.

Transaction pricing has largely stabilized, buyer and seller expectations are aligning more closely, and capital is gradually re-entering the market. Compared to other asset classes, commercial real estate is now trading at levels that better reflect long-term fundamentals rather than short-term volatility.

Our takeaway:
We believe the market is entering a more balanced, predictable, opportunity-driven phase, particularly for investors, developers, and owner-users focused on quality assets and strong locations.

Interest Rates & Lending: Greater Stability Ahead

Interest rates continue to influence nearly every real estate decision. While borrowing costs remain higher than pre-pandemic lows, the current environment is trending in the right direction compared with recent years.

We are seeing:

Improved consistency in commercial loan pricing
Increased lender participation across multiple asset classes
More creative and flexible capital structures returning to the market

This increased stability is allowing buyers, developers, and business owners to underwrite projects with greater confidence, an important shift as we move into the first quarter of 2026.

Construction Trends: Limited New Supply Shapes the Future

One of the most important dynamics affecting commercial real estate today is the sharp slowdown in new construction starts.

Higher material costs, labor constraints, regulatory hurdles, and financing challenges have significantly reduced new development across most property types. While this has created short-term challenges, it also has long-term implications:

Existing properties become more valuable as replacement costs rise
Well located and executed developments face less future competition
Markets with strong demand are positioned for healthier rent growth

Gulf States Construction Services delivers strong value by combining early cost analysis and value engineering with disciplined project management, helping clients control budgets without sacrificing quality. Their team supports a wide range of commercial projects by coordinating engineering insight, constructability planning, and diverse build types to keep every project efficient, compliant, and on track.

Church of the King – New Orleans Campus | Construction Update

Gulf States Construction Services is a major influencer in leading the phased redevelopment of the historic Jerusalem Temple on St. Charles Avenue into the new Church of the King – New Orleans Campus, a project that thoughtfully blends historic preservation with modern expansion.

Phase Two exterior work is progressing steadily, with first-floor exterior masonry on the addition now complete. Crews are moving forward with the framing of the elevator shaft, followed by elevator shaft masonry and roofing. Civil work is approximately 70% complete, with underground utilities nearing completion and off-site utility tie-ins scheduled to begin in the coming weeks.

Inside the building, significant progress is underway in the sanctuary. The dance floor scaffold is fully erected, allowing plaster crews to actively repair and refinish the sanctuary ceiling of this new iconic building. Structural steel installation is ongoing in the attic and upper sanctuary areas, while MEP rough-ins are being finalized. With most framing and drywall complete, painters have begun applying the first coat of primer as the project transitions toward interior finishes.

Targeted for completion in late summer to early fall 2026, this new inner-city campus will serve as a major spiritual and community hub in the heart of New Orleans. Gulf States is proud to play a central role in restoring this landmark property and delivering a facility built to serve future generations.

Development Pipeline Highlights

Our Development Division experienced a flurry of activity late in 2025, with several large-scale projects moving forward across Louisiana and Alabama.

Hammond Horizon Development – Airport Area

143 acres under development near Airport Road in Hammond
Wetlands approvals have been received
Engineering and contract work are currently underway
Additional nearby properties under evaluation, bringing the total development footprint in the airport area to approximately 300–350 acres
Planned as a mixed-use commercial development

Highway 59 Retail Development

Proposed grocery-anchored retail project with outparcels
Anticipated to move into early construction phases
Additional announcements expected in Q1 2026

Slidell Rouse-Anchored Retail Development

Approximately 20 acres in Slidell
Expected to move forward this spring with Rouses as the grocery anchor
This project will involve commercial brokerage, construction, development, and ongoing property management

Property Management: Supporting Long-Term Performance

As development activity continues to grow, our Property Management Division plays an increasingly important role in supporting asset performance for our clients, partners, and third parties.

Our focus includes:

Tenant retention and relationship management
Proactive maintenance and capital planning
Expense control and operational efficiency

By integrating property management early in the development and acquisition process, we help ensure assets are positioned for long-term stability and value creation.

Looking Ahead to Q1 2026

As we enter the new year, we remain optimistic about the direction of commercial and residential real estate and construction across the central and southern United States. Stabilizing capital markets, constrained future supply, and strong regional fundamentals are setting the stage for meaningful opportunities in 2026.

If you are considering:

New development projects
Commercial acquisitions or dispositions
Construction or tenant improvement work
Long-term property management solutions

We welcome the opportunity to connect.

📍 Gulf States Real Estate Services
109 New Camellia Blvd, Suite 100
Covington, LA 70433
📞 (985) 792-4385