In this edition of Midland Times’ "Sound Off," we’re featuring insights from Tucker Schneemann, Senior Associate at NRG Realty Group. Our “Sound Off” gives real estate professionals the opportunity to share more about themselves, Midland’s market, and key trends that can inform and empower buyers and renters in making strategic decisions.
MT: What current market trends should buyers or renters in Midland be aware of?
Schneemann: The commercial real estate market in Midland traditionally follows the Permian Basin oil and gas activity. As we have all seen, the larger E&P companies (ExxonMobil, Oxy, and Diamondback) have acquired other prominent local operators, leading to an equivalent shake-up in the companies that provide field services.
When these consolidations occur, it opens up commercial assets (industrial and office) that are no longer needed. With this comes the increase in vacancies we see in the market today. Those who are financially prepared to make a purchase or are in a position to make a leasing move can capitalize on the dip in price due to the available inventory.
As interest rates have recently improved and with talks of more cuts to come, buyers will be more inclined to pursue these transactions, depleting the available properties. This will, in turn, cause property values to increase, so those who are ready to make a move now will have more options at a more advantageous price point.