“With oil above eighty dollars, we’re seeing some growth. Most of the corporations have really healed their balance sheets. They have a lot of cash, and they’re starting to reinvest in their business and grow. So we expect to see some hiring in the energy sector, and most of those tenants are going to go into Class A buildings.”
Nowlin says that Houston is getting off relatively easy. Commercial real estate markets in Southern California, Phoenix and especially Las Vegas will take years to recover. He says that despite the higher demand for office space in Houston, rents will stay relatively flat over the coming year.