Gulf Oil Spill Not Likely to Impact Commercial Real Estate
Gulf Coast Commercial Property Experts See No Long-Term Effect on Supply or Demand
PRINCETON, NJ, June 22, 2010 – The BP oil spill that has continued for more than 60 days has caused widespread environmental damage and is already affecting shipping, fishing and tourism, but commercial property experts in the region do not believe the accident will have a significant impact on Gulf Coast real estate markets, according to a special report released today by NAI Global.
Commercial real estate leaders from markets bordering the Gulf of Mexico and renowned economist Dr. Peter Linneman weigh in on how experts are quantifying the impact of the oil spill, and provide regional on-the-ground observations of how property markets are faring today. While some markets may see a temporary up-tick resulting from the cleanup efforts, most do not expect any long-term impact, positive or negative, on supply or demand, the primary factors influencing rental rates and property values.
NAI Global, the world’s premier managed network of commercial real estate firms and one of the largest real estate services providers worldwide, has a presence in markets all along the Gulf Coast, including New Orleans, LA, Pensacola, FL, Mobile, AL, Fort Myers, FL, and Houston, TX.
While there is no questioning the potential environmental impact, Dr. Linneman, NAI Global’s Chief Economist, suggests that political activists are inflating the economic impact of the oil spill, and that the impact on the Gulf Coast’s economy in general and real estate in particular will probably be minimal.
“This spill is the most overhyped problem we’ve seen in the past six months,” said Dr. Linneman. “The overall economic impact to the nation will be trivial.”