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.
REITs Rose Last Week to Finish July in Positive Territory
REIT share prices rose last week with the FTSE Nareit All Equity REITs index posting a positive return of 4.2%.
Commercial Real Estate Markets Weaken in Second Quarter
Demand weakened even as construction projects initiated well ahead of the pandemic continued to be delivered to the market, leading to a rise in vacancy rates and softening of market rents.
Little Change in REITs, Broader Equity Market Last Week
Markets ended with little change last week as the FTSE Nareit All Equity REITs index had a total return of -0.6%, reversing the small gains from the prior week. Broad equity markets were down as well, with a -0.3% total return on the Russell 1000.
REIT Earnings, GDP Growth and the Pandemic
Due to the highly unusual nature of this recession, uncertainty about the path of the pandemic, and the potential for a robust recovery, in upcoming earnings announcements the management’s view of market conditions and discussion of the outlook are likely to attract at least as much attention as FFO.
REIT Market Quiet Ahead of Earnings Season
Most property sectors recorded small gains to increases in the high single-digits, led by timber REITs (8.3% total return) and specialty REITs (4.4% total return).
REIT Industry July 2020 Rent Survey Results
Re-openings of the retail sector in many parts of the country in May continue to have a positive economic impact for retail REITs. The other sectors showed little change from June with continued strong rent collections.
REIT Stock Prices Declined Last Week; Volatility Lower, Too
REIT share prices declined last week, with the FTSE Nareit All Equity REITs total return index down 2.3%. Most
REIT Access to Capital Maintained During Pandemic
REITs’ access to capital demonstrates investor confidence in their ability to operate despite difficult economic and financial market conditions.
Solving One of the Job Market Mysteries of the Pandemic
The high level of jobless claims week after week raised fears that new rounds of layoffs may be spreading from the sectors initially hit by the crisis to the rest of the economy, and perhaps warning of greater damage from the shutdowns.
REITs Rebounded Last Week
REITs rebounded last week with a 5.2% total return, according to the FTSE Nareit All Equity REITs index, ending a string of declines over the three prior weeks.
How Has the Lockdown Impacted Commercial Real Estate Sales and Prices?
The most visible sign of this lockdown is the collapse of sales transactions, which fell sharply as social distancing rules went into effect.
CMBS Delinquencies Continued to Climb in June
The impact of the COVID-19 pandemic and economic shutdown has not been spread evenly across the economy or across real estate sectors.