Market Commentary

A preview of the institutional investor survey by Wealth Management’s Real Estate division (WMRE) showed institutional investors are looking to newer property types, such as data centers, life sciences, and medical offices to drive returns in their portfolios.

The U.S. economy has faced numerous headwinds over the last few years.

The FTSE Nareit All Equity REITs Index posted a total return of -5.9% and the FTSE Nareit Equity REITs Index fell 6.0% in August.

In the second quarter of 2022, continued solid fundamentals reflect an ongoing healthy demand for commercial real estate across most sectors, even as concerns about a slowing economy dominate the outlook.

REITs have seen a large increase in investor interest in ESG with greenhouse gas emissions (GHG) and climate change top of mind.

Global real estate turned in their strongest monthly performance since December 2021 in July, outperforming broader markets.

The FTSE Nareit All Equity REITs Index posted a total return of 8.6% and the FTSE Nareit Equity REITs Index rose 9.1% in July.

At year-end 2021, 89 REITs representing 91% of market cap in the FTSE Nareit All Equity REITs Index were rated debt issuers.

REITs are making great strides in ESG by working to enhance ESG data and disclosure.

Over the past two decades, the structure of the economy has changed dramatically, and we see this most clearly in how work, shopping, and leisure are increasingly connected to the digital economy.

The Bureau of Labor Statistics (BLS) released the June 2022 Consumer Price Index (CPI) data showing continued high inflation at 9.1% annually.

Financial markets continue to face the headwinds of tightening monetary policy and inflationary pressures driven by food and energy prices.