T
he Orleans Parish School Board's plan to auction off six properties, including a historic three-story building in the Central Business District, generated buzz in the real estate community. However, the 87-year-old former L.E. Rabouin Memorial School and four other properties failed to attract bids at the May auction, with only one property selling for $400,000.

    The school board is now regrouping and trying to figure out its next steps, as experts say economic uncertainty, higher interest rates, and soaring insurance costs have frozen many commercial real estate deals. The current dynamic has made it challenging for institutions like schools, local governments, and religious organizations to convert old buildings into new uses.

    The East Baton Rouge Parish school system is facing similar issues, with nine schools closed at the end of May, leaving six vacant buildings. Superintendent LaMont Cole wants to explore converting one former school into rent-reduced housing for district teachers.

    Other institutions in Louisiana are also struggling to sell their properties. The Jefferson Parish School Board took a former school off the market after it failed to attract buyers, while the Archdiocese of New Orleans has sold only 15 churches since 2008, with most fetching less than $1 million.

    Real estate experts say old, institutional buildings are particularly difficult to convert due to their specialized uses and historic significance. Developers have had better luck with some properties, such as a former church turned event venue in the French Quarter, but many others remain unsold.

    The auction format used by the Orleans Parish School Board may also have dampened interest from prospective buyers, said Paul Richard, a commercial broker who marketed the properties. The board is considering trying to auction the properties off for a third time this fall, potentially offering them at a lower price.