...Mostly Positive: Lower gasoline and heating oil prices will bolster consumer discretionary incomes and will likely lead to greater retail and travel spending, providing a moderate net benefit to U.S. equity REITs. Shopping centers and hotels should experience the greatest benefit and multifamily, to a lesser extent. The more commercial oriented office and industrial sectors will benefit less. Office properties in oil-exposed areas will have heightened vulnerability to tenant failures and increasing vacancy. Houston Most at Risk: Lower oil prices will likely slow hiring in the Houston MSA, resulting in lower CRE space demand. Moderate portfolio exposures, strong balance sheets and good capital access should limit the ratings impact on Fitch's rated REIT portfolio. Aggressive development (including some speculative projects) could challenge the industrial and office sectors. Fitch-rated U.S. CMBS office property exposure in the Houston MSA totals about $2.5 billion (0.65% of total outstanding...
