The almost pitifully low price of oil isn’t affecting just rig counts in North America. Cities whose economies rely heavily on the energy industry also are hurting, and the pain is echoing in increasingly empty office space.
Take Calgary. The oil capital of Canada has been hit hard by the 19-month-old plunge in oil prices, from over $110 per barrel in June 2014 to the $30 range today. Hundreds of thousands of square feet of office space are now empty, exceeding the 15 percent vacancy rate reported just two months ago.
The latest oil city to be hit is Houston, Calgary’s U.S. twin. Savills Studley, the real-estate services company, reports that companies are eager to sublet space they’ve leased because of the severe drop in business recently. Sublease space available in the city reached 7.6 million square feet in the fourth quarter of 2015, up from 4.5 million square feet in the same period in 2014...Houston Feels The Oil Price Pinch As Office Space Vacancies Grow
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National Office Sector Report (Q4 2015)