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.

  • 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.
  • 8/22/2018

    Low Cap Rates Are Flashing a Signal, but is it Yellow, Red… or Green?

    Are low cap rates flashing a signal that speculative pricing is setting the market up for a correction? 
  • 8/21/2018

    The REIT-Stock Correlation Has NOT “Spiked to One” During Market Crises

    It is often said that “correlations spike to one during a crisis,” but REIT-stock correlations have actually been lower during the worst stock market downturns in history, reinforcing the case for REITs as a portfolio diversifier even during crises.
  • 8/10/2018

    A Strong Economy Boosts Commercial Real Estate in Q2

    The economy is enjoying above-trend growth, with some boost from last year’s tax cuts, which supports demand for nearly all types of commercial real estate.
  • 7/23/2018

    What Are the Structural Factors That Boost Long-Term REIT Performance?

    REITs have provided investors solid returns over the years, despite short-term zigs and zags along the way, in part because of structural features of the REIT model.
  • 7/20/2018

    Inflation Protection from REITs: Constructing a Diversified Inflation-Protecting Portfolio

    How to construct an inflation-protecting portfolio without exposing yourself to the risk of guessing wrong about an increase the inflation rate.
  • 7/18/2018

    Inflation Protection from REITs: Don’t Jump Out of the Frying Pan Into the Fire

    Investors who depend on commodity investments to protect against inflation risk negative returns if inflation doesn’t meet their expectations, whereas REITs have historically provided strong returns in both high-inflation and low-inflation environments.
  • 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.