I have a new theory that Commercial Real Estate Market Activity correlates inversely with gas prices. In other words, in my completely unscientific set of observations, it appear to me that when gas prices go up, market activity goes down and vice versa. A week or so ago, I had one of the busiest weeks I have had in perhaps 2 years, with showings every day. Since then, with all of the turmoil in the Mid East, gas prices have been heading north and activity has been heading south.
Although it is unlikely that I will take the time and effort to do a reasonable study, this makes sense to me. In today's world, Average Joe may not know a lot about the Stock Markets and even if he does, unless he has a lot of investments, I think that it is unlikely that he checks it regularly.
Gas prices however are a different matter. In today's world, gas prices may change daily or sometimes even more than once a day. People see the pump price and keep up with whether prices are up or down. For Average Joe, gas prices are as real an indicator of the economy and what to expect as the DJIA or S&P 500 would be for Wall Street. And it only takes a little common sense to be able to understand how that might effect your life. Higher energy prices means more expense for Joe Average, not just to fill his tank but also in the super markets. Sharp increases in energy prices could mean more economic problems.
Actually, gas prices are probably not a bad indicator. I will continue to keep an eye on it.
Have a great day all and let me know if I can help with your commercial real estate needs. Maybe I can find you a new location where you dont have to drive as far. (smile)
Take care.
David
David W. McCoy
Associate Broker
Commonwealth Commercial Real Estate
10444 Bluegrass Pkwy
Louisville, KY 40299
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