Houston’s reputation as a boom or bust town is the product of its long-standing relationship with the energy sector. High oil prices have traditionally equaled aggressive expansion by energy firms of all sizes, both in hiring and consumption of office space. Or at least, that's how it used to be. The oil bust of late 2014 caused an economic shock that Houston’s office market was still in the process of recovering from when another energy downturn began in 2020. The coronavirus pandemic compounded that pain, causing a sharp drop-off in global demand that rocked the entire energy sector. After falling into historic negative price territory last April, oil prices have been in recovery and are now hovering above $70 per barrel. But economic and office experts say those price gains are unlikely to mean more office usage by energy tenants, with many continuing to operate with caution or directing their focus toward the transition to renewable energy sources. “The vast majority of companies, out of an abundance of caution, out of uncertainty, have a desire to be risk-averse,” JLL International Director Bruce Rutherford said. “They are in the process of reducing their real estatee footprints.” 
Economists were already voicing concerns about the U.S. entering a recession, as well as an energy downturn, at the beginning of 2020. But those concerns paled in comparison to the reality of the pandemic, which plunged the global economy into disarray.Historically high U.S. oil production levels collided with the…  Read the full story here. | 
