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.

  • 7/16/2018

    Inflation Protection from REITs: Solving a Growing Problem

    Ask anybody which investments “hedge” against inflation, and real estate is one of the three that pretty much everybody will identify, along with commodities and inflation-linked bonds
  • 7/10/2018

    REITs Rally on Interest Rate Relief

    REITs have outperformed the S&P 500 in recent months, with a cumulative total return of 14.6 percent since their low point in early February.
  • 6/27/2018

    REIT M&A in the Spotlight

    Mergers and acquisitions involving REITs have been in the spotlight in recent months. The flurry of proposed deals announced in just the first half of this year put the market on pace to set a new record for merger activity in 2018.
  • 6/1/2018

    Commercial Property Prices Continue Steady Gains

    Commercial property prices in April were 9.1 percent higher than one year earlier, according to the CoStar Commercial Repeat Sales Index
  • 5/31/2018

    Sharpe Ratios for REITs by Property Type

    REIT diversification benefits come not merely from their low correlations to other assets but also from their historically strong risk-adjusted returns. 
  • 5/30/2018

    REIT Price Multiples Signal Attractive Investment Opportunities

    Current REIT fundamentals and equity market conditions suggest that investing in REITs will likely continue to have such benefits in the period ahead.
  • 5/22/2018

    Return Correlations between REITs and the Broad Stock Market by Property Type

    REIT returns generally have low correlations with returns from the broad stock market.  Some REIT property sectors—including Health Care, Self Storage, Residential, Infrastructure, and Data Centers—seem to be especially defensive with average correlations of 65 percent or less even during periods encompassing market crises.
  • 5/21/2018

    REIT Funds From Operations Totaled $15.3 Billion in 2018:Q1

    Total REIT FFO was 3.6 percent higher than in the fourth quarter of 2017 and 6.0 percent above over one year ago.
  • 5/14/2018

    Commercial Vacancy Rates Remain Low, but Rent Growth Slowed in 2018:Q1

    Vacancy rates remained low in the first quarter of 2018 for the major commercial property sectors. Vacancy rates were unchanged among national office, retail and industrial markets, and ticked down 10 basis points in apartment markets, according...
  • 5/14/2018

    REIT Total Returns by Property Type: The Value of Exposure to All Sectors of the Real Estate Market

    It should come as no surprise that the top-performing sector of the REIT market varies through time, suggesting that most investors will want to maintain exposure to every part of the real estate asset class.

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