Oil’s Plunge Hurts Houston Office Sales, Calgary Leases

(Bloomberg) — Slumping oil prices are starting to reduce sales and office space rentals in North America’s biggest energy hubs.

In Houston, the center of the U.S. oil and gas industry, Shorenstein Properties last month took its 28-story Five Post Oak Park office tower off the market after receiving bids, said Olivia Hennessey, a spokeswoman for the broker, HFF Inc. In Calgary, Alberta, more companies are seeking to sublet space they no longer need as Canada’s energy capital loses jobs and projects get canceled, according to CBRE Group Inc.

These are early signs that demand is weakening for commercial properties in cities that depend on the energy industry after crude oil prices fell below $50 a barrel, the lowest in five-and-a-half years, from more than $100 in June. Oil companies looking to reduce costs are cutting jobs and choosing to stay put rather than buy or lease new space, said Ross Moore, director of Canada research for CBRE.

Read full article HERE.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s