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.

  • 1/10/2019

    Downside Beta and Upside Beta: REITs Have Generally Protected Against Stock Market Declines

    REITs have generally protected against stock market declines, with downside beta typically well below one; moreover, their upside beta has usually been higher, giving investors a chance to “have it both ways.”
  • 1/4/2019

    In the Wake of Stock Market Turmoil: Returns, Volatility, Correlation, Beta, Diversification Benefits, and Forward Expectations for REITs

    December 2018 was bitter for investors. Total returns in the broad REIT market were -7.73 percent—but that was good news compared with large-cap stocks (-9.03 percent according to the S&P 500), small-cap stocks (-11.88 percent for the Russell 2000) and especially small-cap value stocks (-12.09 percent).
  • 1/2/2019

    The Government Shutdown, Financial Markets and REITs

    The government appears to be settling in for an extended partial shutdown, at least as of January 2. If the shutdown persists beyond the next few days, however, the closure of several key agencies that produce statistics on the U.S. economy could begin to have an impact on financial markets, including REITs.
  • 12/14/2018

    New Green Real Estate Index Provide Sustainability Benchmark

    Investors with an interest in ESG and sustainability have a new tool, the FTSE EPRA Nareit Green Real Estate Index Series that allows investors to integrate ESG considerations in their portfolios of listed real estate.
  • 12/5/2018

    REIT Leverage Declines to an All-Time Low

    REIT leverage ratios declined on both a book-value and market-value basis in the third quarter, as prudent balance sheet management reduced the sector’s exposure to interest rates.
  • 11/29/2018

    Inflation and the Fed, Interest Rates and REITs

    Two of the oldest rules on Wall Street are “Buy low, sell high,” and “Don’t fight the Fed.” While it can be difficult if not impossible to pick the highs and lows in the stock market, it is not that hard to read the Fed’s signals about future policy.
  • 11/27/2018

    REITs Report Solid Earnings Growth Through Q3 2018

    Funds from operations of all listed equity REITs was 11.1 percent higher than one year earlier, according to the Nareit T-Tracker®.
  • 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.