Houston could Benefit from Doha
All eyes are on Doha this weekend.
After oil rallied off a low of $26.05 to more than $42.65, the move may have legs if OPEC and non-OPEC countries can curtail production issues.
At the moment, much of the deal rests on what Iran decides to do straight from the source.
In the past, Iran has announced plans to raise its output from 3.2 million barrels a day to more than four million by March 2017, referring to the proposed production freeze as a joke. Should Iran refuse to play ball, the Saudis may walk away, destroying any hopes for a bottom in oil…
However, Russia may offer an agreement that either grants Iran an exemption or a “graduated production ceiling that accommodates production increases but requires reciprocal guarantees from Iran that it will smooth oil exports,” as noted by Forbes.
If Iran were to accept that proposal, perhaps a deal can be made. But it’s a wait-and-see.
When – and if – a deal is reached, it could be great news for former U.S. hotspots, like Houston, Texas, where commercial real estate has taken a big hit on declining oil prices.
“There will be some pent-up demand when we come out of this cycle,” notes The Houston Business Journal. “Once energy stabilizes, you’ll see leasing activity tick up quickly.”
Houston is well worth paying close attention to, especially when energy prices begin to firm. At this moment, Houston has been crippled as local oil giants struggle under the weight of lower oil prices.
But that could quickly change, if the Doha meeting plays out well. We have to remember that when it comes to commercial real estate opportunities, it’s not about the price that matters. It’s the timing.