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, Broader Equity Markets See-Saw on Prospects for Reopening the Economy
The FTSE Nareit All Equity REITs index closed down 8.2% for the week ended May 15th, the first weekly decline for the month of May.
Rent Collected by REITs in May Unchanged from April
The most recent rent survey results show that on average for REITs, the share of typical rent collected in May was largely unchanged from April.
Growing Dry Powder Pool May Boost Economic Recovery, REITs
There's a $2 trillion stimulus fund you haven't heard about, and it’s growing bigger every day.
REIT Markets Edged Higher for the Second Week; Volatility is Down
Most sectors were up, including a 10.3% total return for timber REITs, a 6.9% total return for specialty REITs and 6.7% total return for commercial financing mREITs.
April Employment Report Shows Record Job Losses, Unemployment
The two largest risks to the economy from recent layoffs are that job losses spread from the front-line sectors into the broader economy, and that temporary layoffs translate into permanent job losses.
The Importance of Real Estate and Rent in Reopening the Economy
Putting the pieces of connected commerce together in the COVID-19 era.
Most REIT Sectors Edged Higher Last Week
Nine of the 14 REIT sectors posted a positive total return.
Updated REIT Industry April Rent Collections
Using the public data along with the privately collected Nareit data, this research note presents a fuller picture of the industry’s rent collection for April.
COVID-19 Shutdowns Impacted CRE Markets Right Away
The business closures and social distancing designed to slow the spread of COVID-19 had a significant impact on demand for commercial real estate, vacancies and rent growth across the major property sectors.
Market Conditions Calm a bit for REIT Returns
Last week the index posted a total return of negative 4.5%, the second week of single-digit moves after much sharper gyrations both up and down in the early stages of the crisis.
Weakness in Durable Goods Orders Focused on Transportation
We are not expecting a “V” shaped recovery because some effects of the virus are likely to remain for quite some time. This news on durable goods orders, though, is consistent with underlying business fundamentals remaining intact for now despite the shutdown.
Nareit Member Survey Results on COVID-19 and April Rent Collections
Fifty-four listed equity REITs responded between April 8 and April 15, representing most property sectors and almost $418 billion in equity market capitalization or 44% of the FTSE Nareit All Equity REIT equity market capitalization.