1. business and industrial
2. energy
3. oil

April 2015
Global Oil and Gas Cities
Falling oil prices capping office demand
in energy capitals – an occupier view
Contents
Introduction3
Section 1 – Global drivers
6
Section 2 – Global hubs
8
Section 3 – Impact on Property
10
Asia Pacific
10
North America
12
EMEA14
Oil prices have halved over the last 12
months to around $60 a barrel at the
time of writing – a six year low. Prices are
unlikely to rebound soon.
2
Occupier Perspective | Global Oil and Gas Cities
Introduction
The global oil and gas industry appears to be at an inflection point. Oil consumption
in the Organisation for Economic Co-operation and Development (OECD) countries is
decreasing, but demand from emerging markets is driving an overall increase in global
demand. This consumption shift is also occurring at a time when new sources of supply
proliferate. The shale gas revolution in North America and an upsurge in output from the
Organisation of the Petroleum Exporting Countries (OPEC) and other major producers
has resulted in a global glut of supply with an obvious impact on price.
Oil prices have halved over the last 12 months. Brent crude is $60 a barrel at the time
of writing – a 6 year low and forecasts suggest prices are unlikely to rebound soon.
Historical data tells us that when such a sudden fall occurs, those cities and countries
with a large exposure to oil and gas revenues are impacted and this manifests itself in
many ways including the real estate market.
The energy industry is subject to powerful agglomeration forces such as proximity to
geographic points of extraction, production and transportation, access to talent, and
political and regulatory stability. These forces drive location decisions, which result in
clusters of activity. In this report we identify and assess 18 global energy hubs. Emerging
from this are ‘energy centric’ cities and ‘corporate hubs’ which are vital to trade and
commerce.
Energy centric cities are highly dependent on the oil and gas sector at both the macroeconomic and property level. We have identified 8 such cities including Aberdeen, Abu
Dhabi, Calgary, Dallas, Houston, Lagos, Perth and Stavanger.
Corporate hubs are important in the global supply and trade of oil and gas. These cities
typically have a broad economic and occupier base, and as such are not overly dependent
on the oil sector. However, they are favoured locations for company head quarters and
other key office related activities. We have identified 10 corporate hubs including
Beijing, Denver, Jakarta, Kuala Lumpur, London, Moscow, Mumbai, Pittsburgh, Riyadh
and Singapore.
In this report we assess these locations and what the impact of the current oil price may
mean for the economies and real estate markets of these ‘energy cities’.
”As major energy players adapt to falling oil prices, deferred
expansions and cost cutting measures will impact demand
for office space.”
Richard Yorke
Global Head of Occupier
Research
Author
Occupier Perspective | Global Oil and Gas Cities
3
In the US major oil and gas firms, especially those
extracting from shale, are already initiating cost
cutting measures. Job losses mean that near-term
demand for office space is expected to soften in
Calgary and Houston. Rents are likely to fall.
01
Location of energy centric cities,
corporate hubs and oil and gas
company headquarters
In EMEA, Aberdeen and Stavanger are especially
vulnerable to the decline in the oil price. The cities are
eight and five times more dependent on energy employment
than nationally, respectively. Expected job losses will impact
demand for space and hit rents.
In Asia Pacific, Perth and Kuala Lumpur are the most vulnerable to
reduced oil related activity. Employment growth is slowing sharply
and planned projects postponed. Perth rents will fall.
Ironically, corporate hubs such as London and Mumbai, which have a
greater diversity of occupiers, are likely to benefit from lower oil prices as
other industries are buoyed by lower costs of production. This will indirectly
lead to stronger overall demand for office space.
Conversely, Moscow rents are falling rapidly because of the collapse in oil
revenues and general economic weakness.
In EMEA, Aberdeen and Stavanger are especially
vulnerable to the decline in the oil price. The
cities are eight and five times more dependent on
energy employment than nationally, respectively.
4
Occupier Perspective | Global Oil and Gas Cities
10
Calgary
51
Pittsburgh
Denver
Dallas
Houston
Ironically, corporate hubs such as London and Mumbai,
which have a greater diversity of occupiers, are likely to
benefit from lower oil prices as other industries are buoyed
by lower costs of production.
North America
EMEA
Asia Pacific
7
Stavanger
2
Aberdeen
Moscow
London
Beijing
5
Riyadh
Abu Dhabi
4
Mumbai
Lagos
2
Kuala Lumpur
Singapore
Jakarta
3
Perth
Source: DTZ Research
Corporate hubs
Energy centric cities
Number of ‘Top 100’ oil and
gas companies
Occupier Perspective | Global Oil and Gas Cities
5
Section 1
Global drivers
Non-OECD countries driving demand for oil
Economic growth has a strong impact on oil demand, particularly in non-OECD countries. Developing countries tend to be
more economically driven by energy intensive manufacturing and agricultural industries, rather than service industries.
Non-OECD oil consumption has increased by more than 50% since 2005, driven largely by demand in India and China.
Looking ahead, world GDP growth is expected to grow steadily over the next few years, driven by the growth in non-OECD
countries, which will underpin the demand for oil (Figure 2). This marks a structural demand shift from OECD to non-OECD
countries. Energy consumption by OECD countries is falling, due to anaemic economic growth and tighter environmental
regulation. OECD counties now consume less than non-OECD. Moreover, virtually all the net increase in oil consumption in
the next 25 years is expected to come from non-OECD countries.
Oil prices have collapsed to a six year low
At the beginning of 2015, brent crude was priced at about $50 per barrel, 50% below where it was a year earlier and
the lowest since 2008 (Figure 3). The sell-off has been triggered by geopolitical conflicts (Ukraine and Iraq), softer
than expected demand by China, and increased supply from North America. Moreover, OPEC has thus far not reduced
production. The immediate outlook for oil prices is uncertain, but a period of prices circa $60 to 80 a barrel looks probable.
This is likely to have a positive impact on world GDP growth. Despite some oil producers like Russia suffering, big oil
importers like India and Japan will benefit. Higher world GDP growth is forecast to underpin firmer demand and prices in the
medium term.
New sources of supply are transforming the energy landscape
Technology continues to unlock new sources of energy, not least shale oil and gas fields in the USA and Canada. Over the
past four years around 20,000 new shale oil wells have been dug. American oil production is now nearly 9m barrels a day,
just 1m short of Saudi Arabia’s output. Over the past five years, the US and Canada have seen the biggest increase in world
oil and gas production. The contest between ‘shalemen and sheikhs’ has tipped the energy scales from shortage to surplus,
promoting price falls. However, a protracted period of low prices is expected to reduce world production (Figure 4). Although
it is unclear if the US or OPEC will cut production first, most major producers will have to tackle oversupply.
02
Growth in world GDP and oil
demand (millions of tonnes)
Source: Oxford Economics
8%
Natural Gas
demand
Oil demand
World GDP
4%
0%
2008
2010
2011
2009
6
Occupier Perspective | Global Oil and Gas Cities
2012
2013
2014(f)
2015(f)
2016(f) 2017(f)
2018(f)
2019(f)
03
Brent crude oil price
(USD per barrel)
2013
Source: Oxford Economics
($109.9)
-50%
Higher GDP growth is
forecast to underpin firmer
oil prices from 2016
2016
($73.5)
2014
2008
($55.0)
($39.9)
Oil prices have
collapsed to a six
year low
04
Average annual % growth in oil and gas production by
country – historical and forecasts
2010-2014
2015-2019
Source: Oxford Economics, Haver Analytics
8%
8%
6%
6%
4%
Russia
Saudi Arabia
Canada
6%
4%
2%
0%
8%
6%
4%
2%
0%
8%
6%
4%
2%
0%
8%
4%
2%
0%
US
2%
0%
World
Occupier Perspective | Global Oil and Gas Cities
7
Section 2
Global hubs
Saudi Arabia and Russia challenged by US oil producers
At the end of 2013, the largest oil producer in the world was Saudi Arabia, followed by
Russia and the US (Figure 5). The oil-drilling boom in the US has pushed the country
closer to energy independence, reflecting the shale drilling boom in states such as Texas and
North Dakota. In fact, oil experts predict that the US will soon overtake Saudi Arabia as the
top producer globally. Although the US consumes nearly double the amount of oil it produces,
the collapse in oil prices may reduce production of shale oil. Several US companies have already
initiated cost cutting measures because of weakening market demands.
US home to half of the world’s 100 largest listed firms
Our analysis of the 100 largest listed oil and gas companies in the world show that more than half are
headquartered in the US (Figure 6). Houston is home to 25 of these companies, including Schlumberger,
Halliburton, Baker Hughes and ConocoPhillips. Similarly, ten of the world’s 100 largest companies are
based in Calgary. Outside of North America; Beijing, Mumbai, Moscow and Perth are global centres for oil
headquarters. Outside of this list of public companies, there are numerous major state-owned enterprises
including Saudi Aramco (headquartered in Dhahran), Gazprom and Rosneft (Moscow) and PetroChina (Beijing).
Oil industry is dependent on 18 global energy hubs
In this report we have identified 18 global energy hubs. The selection of cities is based on our analysis of energy
employment using location quotients (LQs) and presence of headquarters of both listed and state-owned companies.
The hubs can be divided into two subgroups; energy centric cities and corporate hubs. Energy centric cities have an
LQ greater than 1.25 (i.e. they are at least 25% more dependent on energy for employment than average). These cities
are overly dependent on the oil and gas sector at both the macro-economic and property level. These include Aberdeen,
Abu Dhabi, Calgary, Dallas, Houston, Lagos, Perth and Stavanger. Corporate hubs, with a location quotient of 1 or less, are
markedly less dependent on the oil sector than energy centric cities (see Figure 7). Nevertheless, they are favoured locations
for company HQ’s and other key office related activities. These include Beijing, Denver, Jakarta, Kuala Lumpur, London,
Moscow, Mumbai, Pittsburgh, Riyadh and Singapore.
05
Top oil producers by country, 2013
(million barrels per day)
Source: British Petroleum
US
18.9
Top 3 oil producers
China
10.8
Russia
3.3
Top 3 oil consumers
US
10
Russia
10.8
Saudi Arabia
11.5
8
Occupier Perspective | Global Oil and Gas Cities
The US consumes nearly double
the amount of oil it produces
06
Headquarters for the top 100 listed
energy companies, 2014
Source: Bloomberg
51/100 top listed
energy companies
are head quartered
in the US
ExxonMobil
Chevron
Schlumberger
ConocoPhillips
Enterprise Products Partners
Occidental Petroleum
Eog Resources
Anadarko Petroleum
Kinder Morgan Energy
Phillips 66
Halliburton
Williams Cos
Kinder Morgan
Energy Transfer Equity
National Oilwell Varco
Apache
Baker Hughes
Devon Energy
Energy Transfer Partners
Marathon Petroleum
Spectra Energy
Valero Energy
Pioneer Natural Resources
Hess
Williams Partners
Marathon Oil
Continental Resources
Noble Energy
Magellan Midstream Partners
Plains All Amer Pipeline
Cheniere Energy
Spectra Energy Partners
Plains Gp Holdings
Chesapeake Energy
Markwest Energy Partners
EQT
Cabot Oil & Gas
Western Gas Equity Partners
Antero Resources
Kinder Morgan Management
Concho Resources
Access Midstream Partners
Fmc Technologies
Enbridge Energy Partners
Oneok Partners
Range Resources
Regency Energy Partners
Southwestern Energy
Oneok
Cameron International
Sunoco Logistics Partners
Royal Dutch Shell
Total
Eni
Statoil
Petrobras
Ecopetrol
Sasol
Repsol
Formosa Petrochemical Corp
Tenaris
Ypf
Inpex
Empresas Copec
Weatherford International
Ultrapar Participacoes
Galp Energia
Suncor Energy
Imperial Oil
Canadian Natural Resources
Enbridge
Transcanada
Husky Energy
Cenovus Energy
Crescent Point Energy
Encana
Pembina Pipeline
7
Gazprom
Rosneft
Lukoil
Novatek
Surgutneftegas
Gazprom Neft
Tatneft
China
5
Petrochina
China Petroleum & Chemical
Cnooc
China Shenhua Energy
China Oilfield Services
India
4
Oil & Natural Gas Corp
Reliance Industries
Coal India
Indian Oil Corp
Australia
3
Woodside Petroleum
Origin Energy
Oil Search
UK
2
BP
Bg Group
Thailand
2
Ptt
Ptt Explor & Prod
US
51
Other
16
Canada
10
Russia
07
Energy employment location quotient – major hubs*
Source: DTZ Research, Oxford Economics
Energy centric cities
10
Corporate hubs
5
0
Riyadh
Jakarta
London
Moscow
Mumbai
Kuala Lumpur
Singapore
Beijing
Pittsburgh
North America
Denver
Lagos
Dallas
EMEA
Abu Dhabi
Houston
Perth
Stavanger
Calgary
Aberdeen
Asia Pacific
* Energy includes Mining, Quarrying and Utilities
*The location quotient compares energy employment in a city to national norms, according to the formula:
(Energy city employment/total city employment)/(Energy country employment/total country employment)
Occupier Perspective | Global Oil and Gas Cities
9
Section 3
Impact on property
Asia Pacific
Energy employment set to slow after rapid gains
Beijing and Mumbai are estimated to have the largest number of energy workers (around 250,000), although this reflects their
absolute size and status as corporate hubs (Figure 8). Perth is the largest ‘energy centric city’ in the region with 85,000 workers.
Employment has grown rapidly in recent years due to the development of the Australian North West Shelf by the likes of BP, Chevron
and ConocoPhillips. Similarly, Kuala Lumpur has seen rapid employment gains. Besides state oil company Petronas, Malaysia is home
to more than 4,400 oil and gas companies. Likewise, Singapore is the world’s third largest oil trading hub. This has contributed to the
demand for office space in these cities in recent years. However, energy employment is set to slow sharply in most cities over the next
few years. Employment growth in Perth is likely to halve and several US firms have located away from Kuala Lumpur. This slowdown will
inevitably impact demand for space.
Perth new supply smallest amongst regional hubs
Mumbai and Beijing are expected to see substantial increases in new office space (Figure 9). This is not surprising given their absolute
size, but the expected increases as a percentage of stock is dramatic. The Beijing office stock is expected to swell by nearly 50% over
the next few years. Similarly, the stock of office space in Mumbai is set to grow by over 30%. The other regional energy cities, which
have a greater economic dependence on energy, will probably see much more modest increases in supply. Perth is expected to see the
smallest increase in supply, reflecting the slowdown in oil related activity which is likely to delay planned investments.
Perth and Kuala Lumpur rents likely to fall
Perth and Kuala Lumpur are expected to see falling rents and occupier costs over the next few years, reflecting weaker oil related
activity (Figure 10). Perth is one of the most expensive office markets in the region due to the importance of the oil sector. However,
prime office rents declined by about 5% during 2014, and a similar fall is forecast for 2015. Rents, however, are expected to stabilise
in 2016 and increase in 2017, acknowledging the anticipated recovery in the oil price. Likewise, Kuala Lumpur office rents are likely to
soften this year and be unchanged in 2016. Similarly, workstation costs in Mumbai and Beijing are forecast to fall. The big increases in
supply, noted above, will lead to weaker rents. Jakarta and Singapore, being economically broad based corporate hubs, will continue to
see relatively rapid cost increases.
Levels and changes in energy employment by city
08
Source: Oxford Economics, US Energy Information Administration, DTZ Research
% Annual Average Change in
Employment, 2015 - 2019
6
Perth
Beijing
Singapore
3
Kuala
Lumpur
Jakarta
-2
0
Mumbai
4
8
12
% Annual Average Change in Energy Employment, 2010 - 2014
10
Occupier Perspective | Global Oil and Gas Cities
16
The economic slowdown will coincide with significant
increases in supply in a number of major cities, especially in
Mumbai and Beijing. This will support occupiers seeking good
quality affordable space. The long term outlook for the region
remains robust.
David Jones
Oil and Gas Team,
Asia Pacific
09
Future office supply, 000’s sq m and % of stock
Source: DTZ Research
% of Stock
952
Mumbai
10
Kuala
Lumpur
Beijing
9.4
9.1
2,600
15.7
2,888
14.2
31.8
46.4
2015-17 new supply
731
Jakarta
565
Singapore
151
Perth
Occupancy costs per workstation
Source: DTZ Research
Corporate hub
Energy centric city
USD
2014:
3,600
Kuala
Lumpur
2014-2017:
4,200
Jakarta
-0.5
3.8
% growth rate
5,100
6,000
10,700
11,100
11,900
Mumbai
Asia Pacific
(Average)
Singapore
Perth
Beijing
-3.0
1.5
2.5
-2.0
-1.1
Occupier Perspective | Global Oil and Gas Cities
11
Section 3
Impact on property
North America
Importance of energy sector exposes Huston and Calgary
Houston employs the most number of energy workers, in our North America analysis, with around a quarter of a million (Figure 11).
Moreover, the Greater Houston Partnership estimates that nearly 40% of Houston’s local economic activity comes from the energy
sector. Similarly, around 200,000 energy workers are employed in Dallas. Likewise, Calgary is Canada’s oil and gas hub, and is the
most dependent North American city according to our location quotient analysis. Around 80,000 workers are directly employed in
the energy sector, which accounts for about a fifth of the national total. The city has seen rapid employment growth, averaging 5% per
annum over recent years. However, given the recent oil price collapse and its implications for activity, employment levels in Calgary
and Dallas are vulnerable to falls over the next few years. Employment in Denver, however, is set to rebound thanks to the broader
improvement in US economic growth. Most US cities will benefit from lower oil prices.
Oil occupiers have boosted rents over recent years
The local real estate markets in US energy hubs are highly correlated to the health of the energy sector. The impact is particularly
noticeable in Houston, where energy companies have become increasingly active, accounting for 24% of total take-up. The increased
activity is reflected by rising rents. Houston recorded an increase of 9% in prime rents over 2014, reaching $43.8 per sq ft per year. In
fact, rents have grown at higher rates in energy hubs compared to established business and TMT cities (Figure 12). Houston’s rental
growth in 2014 was on par with top national performer San Francisco. However, falling oil prices could reverse the trend and negatively
impact occupier activity. For example, Houston-based energy giant ConocoPhillips have announced they will cut their capital spending
budget by 20% in 2015.
Houston and Calgary rents likely to fall this year and next
Amongst energy hubs, the cities with the highest location quotient, i.e. the largest energy dependence, also have the highest occupancy
costs on a per workstation basis. This reflects the importance of energy occupiers over recent years. Out of the five North American
hubs, Calgary is the least affordable global market (Figure 13). Similarly, Houston is the most expensive US energy hub. However,
occupancy costs are well below the levels in New York and San Francisco, mainly due to a consistent stream of new inventory. The
collapse in oil prices is likely to limit future cost increases, especially in energy centric cities such as Houston and Calgary. Here
absorption rates and rents are likely to turn negative over the next couple of years.
Levels and changes in energy employment by city
11
Source: Oxford Economics, DTZ Research
% Annual Average Change in
Employment, 2015 - 2019
1.5
Dallas
Denver
Pittsburgh
0.7
Houston
-2.0
0
-2.0
Calgary
-4.0
% Annual Average Change in Energy Employment, 2010 - 2014
12
Occupier Perspective | Global Oil and Gas Cities
-6.0
The falling oil price will create significant challenges for
some specific cities such as Houston, but the outlook for
many office markets in US cities remains bright given the
positive economic outlook.
Martin Woodrow
Oil and Gas Team,
Americas
Rental growth in 2014 – energy hubs versus non-energy
dependent cities
Source: Oxford Economics
Energy hubs
13
Los Angeles
New York
San Francisco
Dallas
3.8%
0.7%
1.0%
Toronto
6.9%
6.8%
Washington DC
9.1%
Denver
Calgary
7.3%
Energy average
8.4% 7.8%
Pittsburgh
Houston
9.4%
4.2% 3.4%
Non-energy
average
12
Non-energy hubs
Occupancy costs per workstation
Source: DTZ Research
Corporate hub
Energy centric city
USD
2014:
4,100 5,200 5,900 6,300
7,600
9,500
10,500
10,500
11,800
Los Angeles
Denver
US (average)
Washington DC
Houston
Toronto
New York
San Francisco
Calgary
2.4
7,500
Pittsburgh
Dallas
20142017:
7,100
2.2
2.4
4.9
1.5
2.4
-2.0
2.3
3.2
5.1
-2.0
% growth rate
Occupier Perspective | Global Oil and Gas Cities
13
Section 3
Impact on property
EMEA
Oil centric cities vulnerable to employment falls
Energy employment has been falling across many EMEA cities, and this is expected to accelerate (Figure 14). Moscow and Abu Dhabi
employ the largest number of energy workers, with 90,000 and 60,000 respectively. Aberdeen and Stavanger, however, are much
more dependent on the energy sector and therefore vulnerable to the fall in oil prices. For example, Aberdeen is home to 38,000 energy
workers and consequently is eight times more dependent on the sector than the national average (see page 4). Likewise, Stavanger –
employing 10,000 workers - is five times more dependent on the energy sector than Norway as a whole. Recent falls in oil prices are
likely to lead to job losses in both cities. For example, BP and Sinopec-Talisman have announced several hundred job losses at their
Aberdeen operations. Demand for office space is likely to soften as a result. The big corporate hubs - Abu Dhabi and Moscow – are also
expected to see job attrition. London, however, is unlikely to suffer much.
London rents rising, but Moscow and Riyadh see falls
Central London is an important corporate hub and the location for headquarters such as BP. Moreover, demand from oil and gas
companies has increased despite the collapsing oil price. London has seen several significant lease deals in 2014 by the energy sector,
including GDF Suez Energy committing to more than 60,000 sq ft in the Docklands. Moreover, oil companies such as Trafigura are
setting record rents. Conversely, Moscow office rents fell by a third in 2014 due to the weakness of the Russian economy, brought about
by lower oil prices, trade sanctions and increases to new supply (Figure 15). Completions hit a five year high in 2014 and the supply of
vacant prime office space stands at 26%, the highest since 2008. Similarly, prime rents Riyadh have softened due to significant new
supply and relocations out of the CBD.
Aberdeen and Stavanger rents likely to decline sharply
Stavanger and Aberdeen, where headline rents and other occupancy costs were at record levels in 2014, are likely to weaken over
the next few years (Figure 16). This is due to the decline in oil related occupier demand and delivery of new supply. In Aberdeen, over
800,000 sq ft of office space is due to be delivered in 2015. Similarly, rents in Moscow will fall due to lack of demand and further
increases in supply. Around 1m sq m of office space is exacted to come to market in 2015. Conversely, London rents will rise further
and the West End submarket will continue to be the most expensive office market in the world. Similarly, Lagos occupancy costs will
continue to rise rapidly. In contrast, occupancy costs in Abu Dhabi and Riyadh are likely to slow as oil companies and other associated
occupiers reduce head counts and costs.
14
Levels and changes in energy employment by city
% Annual Average Change in
Employment, 2015 - 2019
Source: Oxford Economics, DTZ Research
4.0
Riyahd
-15.0
-10.0
-5.0
Lagos
0
Aberdeen
5.0
London
Stavenger
-4.0
Moscow
Abu Dhabi
-8.0
% Annual Average Change in Energy Employment, 2010 - 2014
14
Occupier Perspective | Global Oil and Gas Cities
10.0
Energy centric cities such as Aberdeen and Stavanger are
likely to see much less activity in the short term. Moscow is
a special case given the impact of sanctions. But the fall in oil
prices should provide a much needed economic boost and
help support occupier demand across other European cities.
James Taylor
Oil and Gas Team,
EMEA
% Change in prime office rents 2014
15
2%
7%
1%
0%
London
(West End)
Aberdeen
Abu Dhabi
Stavanger
Riyadh
Moscow
-34%
-1%
Corporate hub
London West End
London City
Moscow
Riyadh
16
Energy centric city
Lagos
Abu Dhabi
Aberdeen
Stavanger
Occupancy costs per workstation
Source: DTZ Research
Corporate hub
Energy centric city
USD
2014:
29,7000
London
(West End)
4.1
2014-2017:
19,100
Lagos
6.0
10,800
10,500
9,200
8,800
7,900
7,200
Abu Dhabi
Moscow
Riyadh
Aberdeen
Stavenger
EMEA
(average)
-3.0
-3.0
1.6
2.0
-11.0
2.0
% growth rate
Occupier Perspective | Global Oil and Gas Cities
15
Definitions
Total occupancy cost
Total occupancy cost is defined as the average cost of leasing
prime net usable space.
Total occupancy costs include rents and outgoings. Outgoings
refer to costs controlled and charged by the landlord in a multi
tenant building. Outgoings normally consist of service charge and
property tax.
Our occupancy costs exclude easing incentives, such as rent-free
periods and fit-out costs, as well as facilities costs specific to the
tenant, such as cleaning or IT. We also exclude amortisation of
capital and related expenditure.
Prime rent
The highest rent that could be achieved for a typical building/
unit of the highest quality and specification in the best location
to a tenant with a good (i.e. secure) covenant. This is a net rent,
excluding service charge and tax, and is based on a standard
lease, excluding exceptional deals for that particular market.
Location quotient
The location quotient compares energy employment in a city to
national norms, according to the formula below:
Energy city employment/total city employment)
Energy country employment/total country employment
16
Occupier Perspective | Global Oil and Gas Cities
Notes
Occupier Perspective | Global Oil and Gas Cities
17
Contacts
DTZ’s Oil and Gas Team Contacts
DTZ’s Oil and Gas Team services the needs of this sector’s
clients and contacts around the world. A core group of specialists
operating from regional hubs deliver a diverse range of services
and real estate applied thought leadership to the sector.
RESEARCH
Global Head of Occupier Research
Richard Yorke
+44 (0)20 3296 2319
richard.yorke@dtz.com
BUSINESS
EMEA
James Taylor
Phone: +44 (0)20 3296 3353
Email: james.taylor@dtz.com
EMEA
Liliana Stoianova
Phone: +44 (0)20 3296 2079
Email: liliana.stoianova@dtz.com
Americas
Martin Woodrow
Phone: +1 303 729 2356
Email: martin.woodrow@dtz.com
Asia Pacific
David Jones
Phone: +65 6876 6160
Email: david.jones@dtz.com
18
Occupier Perspective | Global Oil and Gas Cities
Occupier Perspective | Global Oil and Gas Cities
19
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contained herein should not, in whole or part, be published, reproduced or referred to without prior
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@DTZ
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