Category Archives: Energy Outlook

3 Impactful Trends Affecting Pittsburgh’s Energy Hub

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By: Andrew Batson, Director of Research, JLL and Tobiah Bilski, Research Analyst, JLLPittsburgh

While the global energy market faces uncertainty, there are a number of rising trends hitting North America’s major energy markets. JLL’s newly released 2016 North American Energy Outlook takes a deep dive into the trends impacting the industry, and how they’re ultimately changing commercial real estate.

Each of the top seven markets featured in the report—including key U.S. cities like Denver, Dallas, Fort Worth, Houston and Pittsburgh, and Canadian territories like Calgary and Edmonton—face unique opportunities and challenges as a result of a volatile market. We’ve narrowed down the top three most impactful trends affecting a market closer to home: Pittsburgh.Read More

4 Trends Driving the Data Center Industry (and What It Means for Commercial Real Estate)

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By: Christian Beaudoin, Midwest Markets Research Director and Andy Cvengros, Associate Director of JLL’s Technology Practice Group JLL_Data Centers Image

Data center stocks experienced rapid, upward momentum throughout the early months of 2016, with an average gain of 19% during the first quarter and 50% in the second quarter.

What’s more, the cloud managed services market is forecasted to grow to more than $76 billion by 2021 globally (it’s currently at more than $35 billion!).

It’s clear that the future is bright for wholesale data centers. That said, providers must stay on the cutting edge to keep up with shifting sovereignty laws, high demand for cloud technology, and more sophisticated IT resource planning.

JLL’s newly released Data Center Outlook dives into the industry changes you should have on your radar. Read on to learn about how companies are adapting to the biggest data center trends.

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How Low Gas Prices will Impact the Office Market (SLIDESHARE)

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By: Dan Adamski, Managing Director, JLL

For the first time in years, filling up isn’t getting us down.

Diesel prices sitting below $3 are welcomed by consumers, especially as the holidays arrive. In June of this year, gas prices reached $3.68. Now, they’re as low as $2.73, according to AAA. The drop in gas costs hit quickly, and its impact on multiple industries varies.

The Situation: Oil Prices Fall Worldwide

For the first time in five years, the price of one barrel has dipped below $70, which is down from more than $100 per barrel in the last five months. Causes for the drop in costs include:

  • Excess supply and little slow down in production
  • Drop in overall demand, due to slower economic growth in China and lower levels of oil consumption in Europe
  • Strict fuel standards (good news for the environment) and a sharper focus on energy efficient practices

The biggest cause, however, is supply. There are three million more barrels a day in the global market now than there was in 2011. Combined with a new focus on sustainability and weaker demand, it’s no wonder that prices have decreased.

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CRE Close-Up: Pittsburgh Natural Gas Production Averages 6.1B Cubic Feet Per Day

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By: Andrew Batson, Senior Research Analyst, Great Lakes Region, Jones Lang LaSalle

Several times each month, I will spotlight a newsworthy graphic featuring recent research in the local commercial real estate market. This is the first of many in our new visual series CRE Close-Up.  

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Greater Pittsburgh champions a diverse economy, but there’s no doubt that natural gas is the primary driver. Washington County came… Read More