Oil Seeps Into Every Corner Of CRE. The Reckoning From Price Spikes Is Still To Come
For decades, oil prices have been treated by most of the real estate property sector as economic background noise.
But when roughly 20% of the world’s oil supply stopped flowing through a single chokepoint in the Strait of Hormuz, that worldview collapsed.
Across the U.S. and UK, oil price volatility is now directly influencing whether projects are viable, how buildings are designed, and where capital flows in an increasingly unpredictable market.
Rising oil prices reach every square foot of property, impacting transportation costs, inflating construction material prices, pressuring labour markets, influencing central bank policy and reshaping occupier demand.
The Iran war price spike has already…
