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.
CMBS Delinquencies Fall Further as Reopening Revives Cash Flows
The CMBS delinquency rate continued to decline in August as the reopening of the economy helped revive cash flows at some troubled tenants.
CRE Transactions Volumes Down, but Prices Steady
Valuations in the overall market have edged down 1.4% over the past three months, and are little changed year-to-date.
REIT Property Sectors All Rose Last Week
Last week’s gains trimmed the declines so far this year to single digits, bringing the year-to-date total return to -9.0%
Demand for Housing Tops Pre-Pandemic Pace
Nearly every recent housing market indicator has shown significant increases for July, and were above consensus expectations.
Finding Opportunities in Commercial Real Estate During the COVID-19 Crisis
One of the keys to finding opportunities in the current real estate landscape is by differentiating between transitory and permanent changes in consumer behavior and the use of real estate.
REIT Returns Treading Water in Recent Weeks
The FTSE Nareit All Equity REITs index was down 0.3% in terms of total return.
REIT Industry August 2020 Rent Survey Results
Given that rent collections in the industrial, office, and healthcare sectors have stabilized at high levels, the August survey focuses on three property subsectors: apartments, free standing retail, and shopping center retail.
REIT Earnings Fell in Q2, But Strong Balance Sheets Show Resilience
The sharp decline in REIT earnings reflects the record contraction in GDP in the second quarter. Economic activity hit bottom in April, however, and began rebounding over the past four months.
REIT Stock Returns Mixed Last Week
The overall FTSE Nareit All Equity REITs index was down 1.8% in terms of total return.
REITs Rose Again Last Week
REIT share prices rose last week, with a total return of 1.2% on the FTSE Nareit All Equity REITs index.
CBMS Delinquency Rate Drops in July
The 30+ day delinquency rate on securitized commercial mortgages fell 72 basis points in July, to 9.60%.
The Plunge in GDP was Deep, but not so Broad
A few areas—travel, hotels, restaurants and bars, other recreation—were responsible for over a third of the overall economic decline in Q2, yet these categories represent just 6% of the overall U.S. economy.