A measured energy recovery underscores need for an effective real estate strategy.
Energy is moving into a new cycle, defined by a breakneck expansion of American production and refining capacity, a generational shift among workers, and most importantly, a new normal of ‘doing more with less.’ At the same time, systemic changes are presenting challenges and opportunities for further expansion. In an industry where paradigm shifts are not uncommon, an effective real estate strategy is more critical than ever.
JLL’s 2018 Energy Outlook dives into key themes in today’s industry and examines challenges and opportunities in seven energy-centric cities across the U.S. and Canada. Explore the resources below to find insights into an evolving industry.
Despite recent stabilization in oil prices, the recovery process has been measured. Most energy office markets continue to reel from erratic demand for new space and record sublease inventories. In contrast, new avenues for growth are emerging for industrial, especially in the downstream sector.
Because of lessons learned from the downturn, scrutiny from financial markets, and a new culture of cost-cutting, more creative approaches to real estate are being employed. A focus on cost control is now influencing energy tenants’ lease structures and space use.
Essential to the oil and gas industry is the underlying infrastructure, and some regions are facing a pipeline capacity shortage, which is holding back the industry’s potential. Conversely, technology is unlocking efficiencies in daily operations and altering the way energy firms evaluate office footprints.
Senior Vice President