Nareit Market Commentary

The Market Commentary blog on reit.com presents analysis of the macro- and micro-economic fundamentals impacting the REIT and commercial real estate industry. Economists Brad Case, Calvin Schnure and the rest of the Nareit economics team offer 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.

  • 11/20/2018

    Strong Commercial Real Estate Fundamentals Continue into Q3

    Economic momentum continued into the third quarter causing commercial real estate markets to tighten.
  • 11/16/2018

    Amazon’s New Headquarters, and REITs

    REITs have a strong presence in the office, apartment and hotel markets in both surrounding areas of Amazon’s new headquarters and will be important players in the next phase of development of these cities.
  • 10/25/2018

    Sears Bankruptcy and REITs: End of an Era, but There’s a New Chapter Ahead

    When discussing the outlook for retail, it’s important to keep in mind the distinction between the impact on retail stores and what it means for the owners of retail properties, including REITs.
  • 10/9/2018

    REITs Hit the ATM in the Second Quarter

    REITs have relied increasingly on a low-cost, flexible way of raising equity capital as they have expanded their issuance through At-the-market (ATM) programs.
  • 10/3/2018

    Tracking Property Prices and REIT Total Return Beyond the Core Sectors

    New indices introduced by Green Street allow us for the first time to compare property price performance to total returns for property types outside of the traditional core REIT sectors.
  • 9/28/2018

    Rising Homeownership, Apartment Demand, Single Family Home Rentals and REITs

    The recovery in housing markets has generated concerns among investors in apartment properties that a rebound in homeownership could undermine the demand for apartments. Nothing could be further from the truth!
  • 9/6/2018

    Looking Between the Sectors: REIT Price Multiple Performance

    A comparison of recent trends of the P/E ratio for the S&P 500 to the price-to-FFO ratio for REITs shows a contrasting risk/reward tradeoff between the broad equity market and REITs.
  • 9/5/2018

    IRR is an Easily Manipulated “Performance” Metric

    Most private equity investment managers measure their performance using IRR, and illustrates how SLOCs and forward commitments can be used to manipulate IRR computations to make performance appear better than it really is. 
  • 8/28/2018

    Expansion and Growth of REIT Earnings

    Net operating income (NOI) of listed REITs rose nearly 50 percent over the past four years. The steady increases in same-store NOI at a pace above the inflation rate should continue to drive earnings, and valuations, upward in the future.
  • 8/24/2018

    FFO of listed REITs rose 5.5 percent, to $16.4 billion, in Q2

    There are a multitude of signs that REIT performance will likely remain strong in the months ahead.

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