The energy industry is growing fast, adding jobs 2.5 times faster than the North American average. This presentation explores energy industry growth trends and the outlook for the future, with a focus on real estate impacts for energy companies, investors and developers. Get the full report with more detailed information, including market breakdowns, at http://bit.ly/1lX9xzs

1. A look at Energy in North America
2014

2. 12-month employment growth
Energy employment
The rate of energy
job growth is
2.5xfaster than
the national
average during the
same time period.
1
Source: Moody’s Economy.com, BLS
-10.0%
-8.0%
-6.0%
-4.0%
-2.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
Total non-farm Energy

3. Industry insight
U.S. oil production continues to surge
ahead. According to the IEA, the U.S. will
surpass Russia and Saudi Arabia as the
world’s top oil
producer by 2015.
2

4. Company insight
Energy workers are expensive to employ-
with an average salary 58.6%
higher than the U.S. average,
3
$0
$20,000
$40,000
$60,000
$80,000
U.S. average annual salary Energy average annual salary
but they
lead other
industries
in revenue
generation
per worker.
Source: JLL Research, BLS
$
$

5. Real Estate insight
Development around airport in
Calgary, build-to-suit activity in
Denver, energy demand driving rents
up in North America’s second largest
industrial park in Edmonton
4
Direct demand
Office
Industrial
Top-tier class A space
in Denver, Calgary,
and Dallas-Fort Worth
Suburban office or build-
to-suit campus in Houston,
Edmonton and Pittsburgh

6. Real Estate insight
5
Indirect demand
Retail
Multifamily
increase in
population
Hotel
increase in
spending power
more demand for
retail good / services
increase in
population
rural areas with shortage
of housing options
opportunity for
apartment construction
growing global
energy industry
increase in business
travelers to energy hubs
increasing RevPAr

7. The U.S. shale story
6
Bakken
Little industry
diversification and
growing on all cylinders
Marcellus
The largest and most
developed of all the
shale plays
Woodford
Fewer energy jobs but
higher household
income and a need for
real estate
Fayetteville
Positive employment
data but lowest
household income
Haynesville
Flying under the radar,
this heavily populated
shale play has
momentum
Eagle Ford
A young workforce
poised for more
energy jobs and
spending power
1,236,797
(Mcf/d)
Bismarck
Municipal Airport
1,052,388
(bbl/d)
6,915,506
(Mcf/d)
San Antonio International Airport
Austin-Bergstrom International Airport
1,379,994
(bbl/d)
1,415,672
(Mcf/d)
Will Rogers
World Airport
32,817
(bbl/d)
3.0 mil s.f. 17.2 mil s.f.
Fayetteville Executive Airport
1.9 mil s.f.
16.0 mil s.f.
Pittsburgh
International Airport
41,232
(bbl/d)
14,445,375
(Mcf/d)
26.6 mil s.f.
83.6 mil s.f.
54,262
(bbl/d)
6,862,632
(Mcf/d)
Shreveport
Regional Airport
11.4 mil s.f. 38.4 mil s.f.
Source: JLL Research, Energy Information Administration
Niobrara
The engine behind
Denver's energy
boom
Permian
All about energy with
record-low
unemployment
Denver International
Airport
322,000
(bbl/d)
4,441,000
(Mcf/d)
13.9 mil s.f.
3.2 mil s.f.
Midland International
Airport
1,566,000
(bbl/d)
5,623,000
(Mcf/d)
7.6 mil s.f. 3.6 mil s.f.
Local airport
Shale area attributes:
Oil (bbl/d)
Office stock
Industrial stock
Natural gas (Mcf/d)

8. Month 00, 2014 7
The U.S. shale story- real estate readiness
0
15,000,000
30,000,000
45,000,000
60,000,000
75,000,000
90,000,000
Niobrara Marcellus
Shale
Haynesville Permian Eagle Ford Woodford
Office
Industrial
Square feet
Source: Costar, JLL Research
*Office and industrial supply not available for Bakken and Fayetteville
Marcellus Shale produces the most natural gas of
all the shale areas. This has helped support the
development of 83.6 m.s.f. of industrial space.

9. Top 10 metros – 12 month unit absorption
Multifamily & Energy
Houston’s
development pipeline
is growing rapidly ;
nearly 25,000
units are currently
under construction.
8
Source: REIS, JLL Research
4.4
4.6
4.6
5.0
5.5
5.7
5.8
7.5
13.6
14.6
- 5 10 15 20
New York
Denver
Phoenix
Austin
Los Angeles
Seattle
South Florida
Wash-…
Dallas-Ft.…
Houston
Units absorbed (thousands)

10. Retail will follow rooftops:
As population rises, so will retail demand
Retail & Energy
The average retail
square footage per
person in the U.S. is
23.8 s.f.
For North Dakota, that
number sinks almost
50% to 12.02 s.f.
9
Source: NCG, Claritas
0
20000
40000
60000
80000
100000
120000
140000
160000
180000
200000
2014 2017 2019 2021 2024 2030 2036
Permanent population
Temporary worker population

11. Office & Energy
10
New construction
is attractive to energy companies as a
way to gain workplace features that
promote employee health and output.
ample
natural light
shorter
commute times
fitness
facilities

12. Industrial & Energy
Warehouse space
(10,000 – 20,000 s.f.)
11
Demand for
Shop space for repairs
(25,000 s.f.)
Land for storage
(3+ acres)
Build-to-suit to accommodate
highly specific space needs
“Cracker” plants in
Houston and Pittsburgh

13. Hotels & Energy
12
Energy-related business travel
aiding the construction of a
conference center and 525 hotel
rooms in Calgary.
Growth in Denver’s hotel
market exceeds the national
average due to energy
investment in the region
Houston sees the highest
growth in RevPar of any large
urban market in 2013
Energy contributes to Philadelphia's
status as a secure investment
destination for hotel REITs

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Contacts
13
For more information,
please contact:
Research:
Lauren Picariello
Industry Research
+1 617 531 4208
lauren.picariello@am.jll.com
John Sikaitis
Office Research
+1 202 719 5839
aaron.ahlburn@am.jll.com
Dain Fedora
Industrial Research
+1 424 294 3444
dain.fedora@am.jll.com
Aaron Ahlburn
Retail Research
+1 424 294 3437
aaron.ahlburn@am.jll.com
Brady Titcomb
Multifamily Research
+1 954 653 3222
brady.titcomb@am.jll.com
Lauro Ferroni
Hotels Research
+1 312 228 2566
lauro.ferroni@am.jll.com
Local markets:
Thomas Forr
Canada Research
+1 416 304 6047
thomas.forr@am.jll.com
Walter Bialas
Dallas Research
+1 214 438 6228
walter.bialas@am.jll.com
Thomas Jaroszewski
Denver Research
+1 303 260 6523
thomas.jaroszewski@am.jll.com
Graham Hildebrand
Houston Research
+1 713 888 4044
graham.hildebrand@am.jll.com
Andrew Batson
Pittsburgh Research
+1 216 937 4374
andrew.batson@am.jll.com
Geoff Wright
Philadelphia Research
+1 215 399 1825
geoff.wright@am.jll.com

15. © Copyright 2014 Jones Lang LaSalle
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