Market Commentary

The year ahead is likely to see further improvement in commercial real estate markets as the economy continues to recover from the COVID-19 pandemic. Here are the top ten developments to follow.

REITs and publicly-listed real estate around the world were hit hard by the onset of the COVID-19 pandemic, but have generally rebounded strongly.

Early indications from the past two quarters suggest REITs are likely to perform well if we enter into a sustained inflationary environment.

Year-to-date total returns for All Equity REITs stands at 30.1% and 32.6% for Equity REITs.

The FTSE Nareit All Equity REITs Index was down 1.3% for the week, a more modest decline than the 2.3% drop in the Russell 1000.

Year-to-date total returns for All Equity REITs stands at 31.9% and 35.2% for Equity REITs.

EY’s latest REIT Economic Contributions report estimates REITs supported 2.93 million full time equivalent jobs in the U.S in 2020, producing $197.0 billion in labor income.

Year-to-date total returns for All Equity REITs stands at 31.8% and 34.9% for Equity REITs.

The FTSE Nareit All Equity REITs index rose 1.5% for the week ending Nov. 5 while the FTSE Nareit Equity REITs index rose 1.8%.

In 2021 REIT capital market activity has been highlighted by the announcement of eleven REIT mergers.

The return-to-office of employees who have worked from home during the pandemic is rebounding, after a pause during the Delta variant surge of COVID-19.