The Conversation Keeps Coming Up. So Does the Price.

Author: Brian Suiter, Director of Leasing and General Manager at The Feil Organization in New Orleans.
As I listened to NPR detail the impressions of Los Angeles natives noting $4 per gallon prices at a neighborhood gas station, I looked aside of me during my 9 mile daily “reverse” commute from Uptown New Orleans to the suburbs and saw my neighbor driving the same route. My 20 minute commute is pretty typical, although I seem to cover less ground than the average (23 min and 16 miles one way is the national average). It made me consider, what happens as gas prices continue to rise? Historically Americans pay some of the lowest prices at the gas pump… England, Ireland, Germany, and Italy all average around $8 a gallon. Folks in Norway pay $9.25 a gallon. The economic impacts of higher gas prices, whether through taxes or as a result of per barrel pricing, are a double edged sword. They could create more revenue for cities to resurrect failing infrastructure and make people consume less, but also impact the livelihood of those people that have no alternative to driving. With prices continuing to rise will we see high speed rail seriously considered, the death of the SUV, interest in suburban to urban mass transportation, commuters biking, or airlines fail (Continental/ United announced a loss of $213M this quarter due in part to increased fuel impacts). One inevitability is that with $8 per gallon gas prices, there will be a resurgence of people realizing the benefits of urban living as the 32+ mile daily commute starts to eat into the kid’s college fund.

Photo from National Geographic

~~ At The Feil Organization, Brian is responsible for all facets of two new retail developments that encompass 35 acres and 350 thousand square feet of leasable area with budgets that exceed $75 million, in addition to leasing oversight for 400 thousand square feet of retail assets in the southeast. Brian's expertise spans financial and site feasibility analysis; entitlement, permitting and zoning; site design and engineering; and land and air-right sales and acquisitions. You may contact Brian here.