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.

  • 4/30/2018

    The Big Volatility Disconnect: Non-REIT Stock Volatility Jumped in March and April, but REIT Volatility Did Not

    For well over a year now, disappointing REIT returns have been blamed on expectations for rising interest rates, and short-term increases in REIT volatility have been blamed on uncertainty regarding the timing and magnitude of interest-rate changes.
  • 4/26/2018

    REITs Look Undervalued, Regardless of the Interest Rate Environment

    Historically, when REIT dividend yields became high relative to the yields on other income-oriented investments, that has usually been a sign that REITs had become undervalued and were likely to perform strongly over the next several years.
  • 4/25/2018

    What’s the Yield Curve Telling Us About the Outlook for the Economy and REITs?

    Interest rates remain in the headlines, and given their importance in the U.S. economy, it’s smart to pay attention to what they may (or may not) be telling us.
  • 4/18/2018

    REITs Raised $38.3 Billion Common Equity, Tapped ATM Programs For A Record $7.5 Billion in 2017

    REITs raised $38.3 billion in common equity in 2017, the highest annual total since 2013.
  • 3/29/2018

    Property Prices and Cap Rates in a Rising Interest Rate Environment

    The question on everyone’s mind is, will this drive up cap rates, possibly causing property prices to fall?
  • 3/19/2018

    The FOMC and REITs

    The REIT market generally overreacts initially to news that affects the timing and possible aggressiveness of Fed tightening, as well as to increases in long-term interest rates, but tends to recover over time.
  • 3/15/2018

    REIT Exposures to Interest Rates at an All-Time Low

    Two of the biggest questions for investors for the remainder of this year will be what happens to interest rates, and how will changes in the interest rate environment affect businesses and financial markets?
  • 3/7/2018

    REIT Stock Performance and the Interest Rate Environment

    Market interest rates typically increase during periods when macroeconomic conditions are strengthening, the same strengthening that often drives positive REIT investment performance.
  • 3/7/2018

    REITs Report Rising FFO and Occupancy Rates, Reduced Exposure to Interest Rates in Q4

    Total FFO of all listed U.S. equity REITs rose 3.2 percent to $15.1 billion in the fourth quarter of 2017, according to the Nareit T-Tracker®.
  • 3/5/2018

    Are Commercial Real Estate Prices on Shaky Ground?

    The sustained rise in prices of commercial real estate over the past seven years has prompted questions whether valuations may be getting ahead of themselves.