Does the price of oil affect how the oil companies lease land?
As the price of oil has increased, it appears to have had a positive effect on the market’s leasing activity. Several of my borrowers’ tenants have increased their lease space as a result of the oil and gas activity recently, which has created their need for additional staff and space. Our business banking division of the bank mainly deals with companies with financing requests between $250,000 and $10,000,000, so our division of the bank targets customers that provide support services to the large oil and gas companies as well as other industries. As mentioned previously, we have seen an increase in leasing activity as well as new construction projects and a portion of that can be attributable to the increase in prices. How does the market in Houston compare to the rest of the country? My focus is obviously on Houston, but I know there is a lot of talk about a possible recession and a stagnant real estate market nationwide. I know we are very busy here at Wells Fargo, and we’re lookin
