CHICAGO-Damage from Hurricane Katrina has cost two local REITs about $15 million. Equity Office Properties Trust’s lone holding in New Orleans, the 1.2-million-sf Lakeway complex in suburban Metairie, LA, sustained $12.5 million in damages, including $1.9 million in lost rental income, company officials recently disclosed.

Meanwhile, Equity Residential had $3.7 million in expenses related to Hurricane Katrina as well as two fires during the third quarter. Equity Residential has more than 1,200 units in markets hit by Hurricane Katrina.

“Some of our expenses may be recoverable,” says chief financial officer Marsha C. Williams. However, the company’s insurance coverage includes a $50-million per-occurrence deductible, with a $75-million cap.

Equity Office Properties Trust abated rent for Lakeway tenants beginning Aug. 29. Tenants were able to move back into Lakeway I last month, but only portions of the other two buildings were ready for tenants to return last week, according to the company.

Without the expenses related to hurricane and fire damage, Equity Residential’s portfolio would have seen a more modest increase of 4.1% in expenses rather than 6.2% during the third quarter, while net operating income would have increased 4.4%, rather than 3%.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2023 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.



Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join now!

  • Free unlimited access to's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including and

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2023 ALM Global, LLC. All Rights Reserved.