As the U.S. emerges as a leader in the world’s energy market, an increased demand for real estate follows, according to JLL Research team’s Energy Outlook Report. Over the next couple of decades, the U.S. energy industry will drive employment gains, the reindustrialization of the economy and the migration of workers and income growth. This economic impact will not only be felt by those directly in the energy industry, but also by the numerous sectors that support it.
Energy companies will demand more industrial, development and manufacturing space and will require larger office footprints in hub locations to accommodate the growing workforce. This means the energy industry will be a source of long-term economic growth and an attractive tenant group for investors and developers to target.
The burgeoning U.S. energy industry means good things for the multi-family, hotel and retail sectors as well. The booming population will drive an increased demand for housing while broader income growth results in greater personal savings and more retail spending – eventually spurring an increase in the demand for retail space to satisfy an expanded level of purchasing power.
JLL’s newest forecast infographic illustrates the future of real estate in the energy industry.