The Market Commentary blog on reit.com 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.
In 2023, REITs Are Likely to Remain Resilient to Higher Interest Rates
REITs have a long runway to manage leverage in the higher interest rate environment because they have used fixed rate debt to lock in low interest rates for long terms.
Job Growth Slowing but Demand for Workers Remains
Hiring was strong in the hospitality, warehouse, and retail sectors in October, and the data marked 2.5 years with hires greater than separations.
REITs Outperformed Stocks in November
REITs posted positive results for the second consecutive month in November and outperformed stocks for the first time since April, as the FTSE Nareit All Equity REITs Index rose 6.0% and the FTSE Nareit Equity REITs Index gained 5.8%.
Property Fundamentals Across Most Sectors Remained Solid in Third Quarter 2022
With mixed economic growth results, waning job gains, increasing interest rates, and rising recession risk, the U.S. economy is facing numerous headwinds.
Nareit Research Estimates 150 Million Americans Invested In REITs
An estimated 150 million Americans live in households that are invested in REIT stocks in 2022 directly or indirectly through mutual funds, ETFs, or target date funds, new research by Nareit shows.
REITs Rose Along with Broader Markets in October
REITs and stocks posted their first positive monthly performance since July.
Historical Real Estate Performance Before, During, and After U.S. Recessions
After experiencing two consecutive quarters of negative growth in the first half of 2022, U.S. real GDP grew by 2.6% in the third quarter this year.
REIT Solar Opportunities: 3.5 Billion Square Feet of Roof Space
The U.S. is shifting toward a greater interest in renewable energy, and the rooftop areas of buildings across the country offer a potential source of energy generation with the installation of solar panels.
Historical REIT Outperformance Across Inflation, Interest Rate, and Economic Growth Regimes
With inflation remaining at 40-year highs, interest rates escalating, and economic growth contracting, the U.S. economy is in a precarious state.
REIT Capital Market Update: September 2022
U.S. REITs raised $6.2 billion from secondary debt and equity offerings in the third quarter of 2022, down from $11.1 billion raised in the second quarter.
REITs Own 535,000 Properties in the U.S.
Nareit’s annual update of REIT property counts and estimated gross asset values by state and property sector is now available on the REITs Across America website.
REITs Fell Sharply Along with Broader Markets in September
In September, REITs and stocks posted their worst monthly performance since March 2020, as a hawkish Federal Reserve warned that measures to bring inflation under control could bring “some pain” to U.S. financial markets, and Treasury yields continued to rise.