The Market Commentary blog on reit.com presents analysis of the macro- and micro-economic fundamentals impacting the REIT and commercial real estate industry. The Nareit economics team offers their commentary on the state of the market, the outlook for commercial real estate and breaking macroeconomic news. The opinions set forth here are solely those of its author(s), and do not necessarily reflect the views of the Nareit or its membership.
REIT Allocations in Pension Funds Increase
Nareit analysis of data from Preqin, a financial research firm that tracks investments in alternative assets, indicates that the use of REITs by pension plans has been increasing, particularly among the largest, most sophisticated plans.
REITs Continue to Improve GRESB Scores
GRESB, an independent organization providing validated sustainability performance data and peer benchmarks for investors and managers, has released its 2023 Real Estate Assessment, which measures the sustainability performance of individual real estate portfolios based on self-reported data.
Hike, Stop, and Bounce: REIT Performance After Monetary Policy Tightening Ends
Under Pressure: Strength of CRE Property Fundamentals Continue to Wane
Data from CoStar highlight the current state of the commercial real estate market.
Supply-Demand Imbalances Diminish Strength of Property Fundamentals
Space market fundamentals can differ markedly across property types. Net absorption (demand) and net deliveries (supply) for the four traditional property types (retail, apartments, industrial, and office) highlight the ups and downs of the space markets and can illustrate excess net demand (net absorption less net deliveries) for each sector.
Global Real Estate Took a Breather in January
The FTSE EPRA Nareit Developed Extended Index fell 4.5% in January, and posted a total return of 16.0% since Oct. 19, 2023.
Mind the Gaps: Valuation Convergence and REIT Outperformance
Nareit research has shown that REIT total returns have tended to bounce back and even surge after periods of significant REIT underperformance relative to private real estate.
Disciplined Balance Sheets Insulate REITs From Higher Rates
No Fed interest rate cuts? No problem: With their disciplined balance sheets, U.S. public equity REITs may not be immune from higher interest rates, but they are reasonably well-insulated from them.
REITs Declined in January
The FTSE Nareit All Equity REITs Index declined 4.9% in January. Broader markets posted narrow gains as the Russell 1000 rose 1.4% and the Dow Jones U.S. Total Stock Market rose 1.1%.
Increased Equity Investment Boosts Number of Americans Invested in REITs to Nearly 170 Million
New research by Nareit estimates that 168 million Americans, or roughly 50% of American households, were invested in REIT stocks in 2023.
Global Real Estate Rebounded in 2023: Q4
The FTSE EPRA Nareit Developed Extended Index rallied in the fourth quarter of 2023 as bond yields declined in the United States and other developed markets.
REITs Raised $5.2 Billion Through Secondary Offerings in 2023: Q4
U.S. REITs raised $5.2 billion from debt and equity offerings in the fourth quarter of 2023; note that this total is preliminary and will be revised upward when ATM program usage data become available.