Energy prices impact commercial real estate

Screen Shot 2015-03-05 at 8.45.46 AMBy Dees Stribling } MHN Online

Domestic energy prices seem to have stabilized for now, even seen a dead-cat bounce in recent weeks, but that still leaves a question: what will low energy prices do to (and for) commercial real estate over the longer run? And it does seem like low prices will be around for a while, and maybe even drop again—that’s the usual behavior of the energy business—until the next shortage or international crisis. The full impact of energy prices on real estate isn’t fully clear yet, but some patterns are emerging. Low energy costs will generally be beneficial for property owners, but for different reasons for different property types.


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