Still no oil price impact for D-FW real estate (9/24/15)
So far North Texas’ hot real estate market is shrugging off the plunge in oil prices.
And economists who are tracking property markets predict that the Dallas-Fort Worth area will continue to outperform other Oil Patch cities, according to a new report by CBRE Group Inc.
“The collapse in crude oil prices that began a little over a year ago brought uncertainty, speculation and a negative outlook to key energy markets and how the pricing outlook might affect commercial real estate,” Robert Kramp, CBRE’s director of research and analysis, said in a statement. “Even though crude oil prices are expected to remain low for the foreseeable future, Dallas-Ft. Worth’s vibrant commercial real estate performance demonstrates how the state is well hedged against the energy downturn.”
The commercial real estate firm predicts that office vacancy rates will continue to fall in North Texas through the end of next year because the energy industry has such a small share of the local economy.
“Given the diverse industry base of Dallas-Ft. Worth and the energy sector’s 1.1 percent share of metro employment, any economic impact from low oil prices is expected to be marginal on a local level,” Michael Caffey, executive managing director with CBRE, said in the report. “This means commercial real estate occupancy sees minimal effects as our region looks to other industries like finance, insurance, wholesale trade and transportation for growth.”
D-FW’s commercial property market is still prospering while conditions are deteriorating in energy markets including Houston and Calgary, according to CBRE.
Houston leads the country in office construction and has seen a surge in empty sublease space this year as oil and gas firms have cut back.
North Texas’ office, apartment, shopping center and industrial markets are all forecast for continued growth, according to the commercial real estate firm’s report.
Energy has a larger share of Texas economy than in any other state – about 47 percent of the state’s gross domestic production. http://bizbeatblog.dallasnews.com/2015/09/still-no-oil-price-impact-for-d-fw-real-estate.html/