Gilmer says a cutback in 1997-98 due to the Asian financial crisis has led to Houston's current demand for more space. At that time, office construction had slowed in the city. Now, there's a rebound and strong demand for new space as absorption rises and space dwindles. Similarly, Gilmer tells GlobeSt.com, the multifamily market is absorbing about 1,300 units per month overshadowing previous concerns of overbuilding.

Gilmer says Houston is reaping the rewards of the international oil market. Houston's strong oil market will most likely offset other flagging industries and serve to stabilize the city's economy. Indeed, he says, this is the same scenario that had saved Houston during the Asian economic crisis. "Houston absorbed this blow with minimal damage overall," says Gilmer. A diversified Houston economy drew strength on the jobs available at places like Compaq Computer Corp., Continental Airlines and American General Corp. Gilmer believes that oil will now serve as the strong link in the economy, holding up other sectors that are seemingly destined to be poor performers in the coming months.

"I have some confidence that the US economy is going to decline and bounce back in short order," Gilmer says, expressing the utmost support for anti-inflation measures being imposed at the federal level.