REIT Market Commentary

REIT-Stock Correlations by Property Type: A Sharp Decline

The correlation between REITs and the broad stock market has always been relatively low, because REIT returns are driven by the real estate market cycle whereas returns for most other equities are driven by the much shorter business cycle. Read More

Senior Housing Occupancy Stable in Q3 Amid Building Boom

The senior housing business is in the midst of a building boom the likes of which we have not seen for a couple of decades.  Read More

Valuation Metrics Remain in Bullish Ranges

Whether what you’re looking to purchase is simply the steady income typical of REITs and Treasuries or the broader performance and diversification benefits of the real estate asset class, the “price” for purchasing those investment return attributes through listed equity REITs is especially favorable now. Read More

Data Center REITs: Hosting the Cloud, Here on Earth

Data centers house the servers and network equipment that make modern communications possible, including the Internet and data transmitted by cell phones.  Read More

Listed REITs and Non-REIT Stocks: A Comparison of Total Returns, Volatilities, and Correlations

An investment performance comparison between listed equity REITs and the rest of the U.S. stock market—segmented by sector or by style—highlights the long-term diversification benefits of the listed equity REIT market. Read More

Update on Commercial Mortgage Lending: Not Too Hot, but Not Too Cold Either

Excessive debt growth is a warning sign of an overheating real estate sector. Growth of commercial mortgage debt has been modest, however, at only half the pace of the prior cycle. Banks have been the mainstay of lending, but life insurers have shown increased appetite for commercial mortgages, and net issuance of CMBS turned positive in the second quarter.  Read More

A Comparison of U.S. and Global REIT Returns

Investments from listed property companies in emerging markets have been especially strong over the past year, according to the FTSE EPRA/NAREIT Global Real Estate Index Series.  Over longer historical periods, however, risk-adjusted returns from listed U.S. equity REITs have outpaced those from listed real estate in both emerging markets and non-U.S. developed markets. Read More

How Will Apartment REITs be Impacted by New Construction?

Vacancy rates are likely to remain low as adult members of shared households eventually strike out on their own. However, that the process may take longer than anticipated.  Read More

Looking Carefully at the Current Real Estate Market Cycle

The current bull market for exchange-listed equity REITs has rewarded investors with returns averaging more than 21% per year over the past 8½ years—but by the standards of previous real estate market cycles this one has not even hit its stride yet. Read More

Construction Activity Begins to Slow, Boosting the Outlook for REITs and Real Estate

REITs and other owners of commercial properties are likely to benefit from a favorable balance of supply and demand in the months ahead. Read More