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Oil Prices Remain Key for Houston Office

With oil recently falling to 18-month lows in late December, there are concerns that the recovery of the Houston economy could stall if oil’s market price remains below $50 per barrel for an extended period.

Oil prices Companies need oil prices at or above $52 per barrel to profitably drill new wells (credit: Energy and Gold Ltd).

HOUSTON—CMBS private label pricing volume was $5.1 billion in December, bringing fourth-quarter total volume to $18.1 billion. When the dust settled on 2018, private label CMBS issuance came in at $76.4 billion, 11.4% below 2017, according to a recent report by Kroll Bond Rating Agency.

Despite recent volatility in the broader capital markets, there are a number of transactions slated for the first quarter. These include up to a dozen single-borrower deals, eight conduits and as many as four commercial real estate collateralized loan obligations. To the degree volatility continues, however, it could dampen issuance activity, says Kroll.

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Lisa Brown

Lisa Brown

Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.

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