Both non-traded and publicly traded REITs have been increasingly active in the acquisitions market in the first half of 2010, according to an analysis released July 20 by SNL Financial.
SNL looked at 2010 data through July 13 and found that non-traded REITs had been more active in terms of number of deals, spending $5.13 billion to purchase 192 properties. While publicly traded REITs spent more money ($6.95 billion) on fewer total deals (174 properties) during the period.
Chris Henderson, an analyst at SNL, attributed the gap to different targets between non-traded, which acquired 89 retail properties, and publicly traded REITs, which purchased 33 health care assets.
“About two-thirds of the non-traded REIT acquisitions of retail properties were in the single-tenant space,” Henderson said. “While this helped push the industry’s property count higher than the public space, the average price per property was much lower.”
Overall, the main focal point of all this deal activity has been on the office sector. REITs spent more than $4 billion combined on acquisitions in the office sector in 2010, according to the report.