NAREIT Commercial Property Update 2015:Q3
Economic fundamentals are supporting all major property sectors. Robust household formation has spurred demand for apartments, keeping vacancy rates low and boosting rents. Job growth has been choppy month-to-month, but has translated into a 30% increase year-to-date in absorption of office space. The retail sector lags somewhat, but the lack of new construction is allowing some modest rent increases.
REITs: Real Estate With a Return Premium
A NAREIT analysis of the performance of publicly traded equity REITs and private equity core, value-added and opportunistic funds over the last full real estate cycle shows REITs outperformed private equity real estate funds over the entire cycle, as well as over the bull market portion of the cycle when value-added and opportunistic funds’ higher leverage would have been expected to deliver superior returns.