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.
How REITs and Private Real Estate Performed Through the Pandemic
REITs have outperformed private real estate property and fund indexes through the fourth quarter of 2021 and have an annual increase of 41.3% in 2021 compared to 22.2% for private real estate.
REIT Earnings Rose 24.6% in 2021
REIT earnings, as measured by funds from operations (FFO), rose 24.6% in the full year 2021 as the recovery from the early stages of the pandemic gained momentum.
Nareit Study Shows the Growth and Benefits of Global REIT Adoption
There are currently 41 countries and regions, accounting for 85% of global GDP with a combined population of nearly 5 billion people, that have enacted REIT legislation.
Pensions Increasingly Using REITs to Access Real Estate
The 2022 Pensions & Investments annual survey of pension plans found that REIT assets in the largest 200 U.S. retirement plans grew 22% to $34.2 billion during the year.
Estimating the Size of the Commercial Real Estate Market
For the second quarter of 2021, REITs made up an estimated 9.4% of the total CRE market.
REITs Set Record for Annual Capital Raising
U.S. REITs raised more than $126 billion from IPOs and secondary debt and equity offerings in 2021, a new record for annual capital raising.
What Does the January Jobs Report Say About Commercial Real Estate and REITs?
Solid macroeconomic fundamentals are good news for commercial real estate and REITs, as a growing economy generates increased demand for leased commercial space.
Commercial Real Estate Shows Across-the-Board Improvement in 2021:Q4
Robust demand from tenants contributed to declining vacancy rates across most property types, and faster rent growth.
REITs Fell in January
REITs fell sharply in January 2022 as the Omicron variant of the COVID-19 Pandemic persisted and the Federal Reserve indicated its readiness to tighten monetary policy.
Global Real Estate Posts Strong Returns in 2021
The FTSE EPRA/Nareit Global Real Estate Index Series performed strongly in 2021, with the Developed index posting a total return of 27.2%, while the Global index, which includes both Developed and Emerging Markets, returned 23.0%.
CRE Markets Gained Speed Through Year-end 2021
The recovery in commercial real estate markets accelerated throughout 2021, especially in the final months of the year.
Solid Balance Sheets Prepare REITs for Rising Interest Rates
A close examination of REIT financial exposures suggests that increases in interest rates may have little impact on their operating performance.