Crane-served manufacturing buildings are expected to be in high demand as the energy capital of the world reemerges from the downturn. Demand will also rise for distribution and warehouse space as oilfield equipment manufacturers produce more supplies for downstream companies.
Bisnow will discuss the intersection between the commercial real estate and oil and gas industries on Oct. 4.
“The price of oil and gas directly affects the manufacturing sector of industrial real estate more than any other [sector],” NAI Partners partner Travis Land said. “When the oil and gas prices are higher, the demand for that equipment and components increase, and when they increase their output they typically need more space.”
In reverse, if the demand for oil drops, so does the demand for manufacturing space, he said.
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