How does the price of oil affect the Commercial Real Estate Market?
The theory, in short, is that money not spent on energy will be primarily spent on consumer durable goods. Money spent on goods raises demand and profitability for US Companies which increases need for office space, industrial warehousing and retail locations.
Check out this presentation for more information: Oil's Impact on CRE
Note: Information pertaining specifically to CRE begins around slide 8.
Do you think this economist's projections are too optimistic? Will gas prices remain stable? If so, this could mean another great year for Commercial Real Estate!
Posted on Wed, February 25, 2015
by Ben Tiner