As reporting about the world’s oil markets increasingly features terms like “glut” and “supply overhang,” property prices directly related to US oil extraction are widely taking a beating. At the same time, other indirectly related property sectors such as retail are benefitting from low gas prices. In the wake of the latest drop in oil prices, here’s a quick roundup of the recently reported ripple effects in commercial property:
- Houston Commercial Vacancy Rates Highest In 20 Years – (Reuters) A CBRE study lifts the stetson on the intimate relationship between Houston’s office market and the pumping, hauling and selling of the black stuff. A wave of sublease offers has tenants scrambling to reduce their space footprint in Space City.
- Pimco reports stormy future for CRE nationally – (TheRealDeal) Pimco’s most recent report cites oil price free-falls as driver for a “blast of volatility” in US CRE.
- Consumers, retail and cheap gas – (JPM) – Banking giant reviews 57 million anonymized debit and credit card accounts, arrives at retail spending patterns centered around gasoline savings.
- Oil industry exposure spells trouble for CMBS (Fitch) – The securitization market and oil prices may be taking a dive together, says ratings giant.
- North Dakota oil production sees biggest drop ever (Bismark Tribune) – The performance of Bakken wells and the leases upon which so many sit has become an issue as production is ratcheted back to match the skyrocketing world supply.