Nareit Market Commentary

The Market Commentary blog on presents analysis of the macro- and micro-economic fundamentals impacting the REIT and commercial real estate industry. The Nareit economics team offers 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.

  • 2/7/2014

    Commercial Property Update 2013:Q4

    Market conditions improved across all property types in the fourth quarter.  Strong demand for apartments pushed absorption higher, although a pick-up in new supply tempered the decline in vacancy rates.  Office rents increased, despite the slow decline in office vacancies. 
  • 2/2/2014

    Economic Update (February 2, 2014)

    Homeownership is stabilizing, but weak job market is still holding back both rental and ownership markets.  The home ownership rate held steady for the final three quarters of 2013 at 65.1 percent, after having declined a half-percentage point or more each year since its peak in the mid-2000s (Chart 1).  This tentative stabilization suggests that housing markets may soon move beyond the mortgage crisis and back to a period of more normal recovery and growth.
  • 12/9/2013

    Signs of financial healing in the third quarter

    The economy showed more signs of financial healing in the third quarter, according to the Federal Reserve Board’s Flow of Funds Accounts. Commercial lending strengthened as transactions and prices picked up.  Commercial mortgage net lending increased to nearly $80 billion annualized, the strongest since prior to the financial crisis. Commercial banks provided $55 billion, roughly two-thirds of the total net lending.  Life insurance companies increased their net position by the largest amount since the crisis, and net issuance of CMBS was positive for only the second time since 2007.
  • 11/20/2013

    Commercial Property Update 2013:Q3

    The picture was mixed across property types, with apartments enjoying strong demand as vacancy rates push yet lower, the office sector experiencing a slow recovery, and retail sector still barely out of the starting gate.  The job market firmed a bit in recent months but still lacks vigor.  Household formation lost steam, leading to less demand for apartments in the near term (or perhaps reflecting a lack of availability). 
  • 8/8/2013

    Economic Update

    Rising borrowing demand and supply of commercial credit indicate that a broader recovery is underway. There are new signs of life in the commercial mortgage market that indicate a strengthening of the recovery in the commercial property sector. The Federal Reserve’s Senior Loan Officer Survey shows that nearly half of all banks report stronger demand for commercial loans.
  • 8/6/2013

    Commercial Property Update 2013:Q2 (August 6, 2013)

    Apartment markets held firm in the second quarter despite a rebounding home sales market, while office and retail sectors saw little improvement.  Job growth slipped in July but economic fundamentals overall are supporting property markets. ...
  • 5/10/2013

    Economic Update (May 10, 2013)

    Federal revenues signal a stronger economy Federal government revenues are closely related to the strength of economic activity, because as workers’ incomes and business sales rise and fall, their tax payments follow suit. The U.S. Treasury...
  • 5/9/2013

    Commercial Property Update 2013:Q1 (May 9, 2013)

    The pace of recovery in the property sector slowed a bit in the first quarter, and vacancy rates remain quite high in office and retail sectors. Economic fundamentals continue to firm, however, and the increasing momentum will likely more than...
  • 4/30/2013

    Economic Update (April 30, 2013)

    Strong Rental Demand Still Driving Fundamentals for Multifamily Housing The demand for rental housing continued its strong growth in the first quarter, with total rental household growth accelerating to a 3.1 percent annualized rate. The number of...
  • 4/26/2013

    Economic Update (April 26, 2013)

    Another disappointing GDP report GDP growth in the first quarter fell short of expectations, with a 2.5 percent annualized increase (consensus had expected 3 percent growth or more). This is roughly in line with the economy’s potential growth rate...