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.
Property Prices and Cap Rates in a Rising Interest Rate Environment
The question on everyone’s mind is, will this drive up cap rates, possibly causing property prices to fall?
The FOMC and REITs
The REIT market generally overreacts initially to news that affects the timing and possible aggressiveness of Fed tightening, as well as to increases in long-term interest rates, but tends to recover over time.
REIT Exposures to Interest Rates at an All-Time Low
Two of the biggest questions for investors for the remainder of this year will be what happens to interest rates, and how will changes in the interest rate environment affect businesses and financial markets?
REITs Report Rising FFO and Occupancy Rates, Reduced Exposure to Interest Rates in Q4
Total FFO of all listed U.S. equity REITs rose 3.2 percent to $15.1 billion in the fourth quarter of 2017, according to the Nareit T-Tracker®.
REIT Stock Performance and the Interest Rate Environment
Market interest rates typically increase during periods when macroeconomic conditions are strengthening, the same strengthening that often drives positive REIT investment performance.
Are Commercial Real Estate Prices on Shaky Ground?
The sustained rise in prices of commercial real estate over the past seven years has prompted questions whether valuations may be getting ahead of themselves.
Commercial Property Markets Hold Steady in Q4
Economic fundamentals continued to support the real estate markets.
Interest Rates, Inflation, the Stock Market and REITs: What are the Risks?
On the Other Side of the CMBS “Wall of Maturities”
Now that we are on the other side of the Wall of Maturities, it’s worth a look back to see how the market fared, and what are the prospects for the CMBS market in the year ahead.
What Will Have the Biggest Impact on REIT Performance in 2018? Investors Respond to a Nareit Survey
We decided to turn the tables and ask investors and other readers of the Nareit News Digest for their views on what will have the greatest impact on REIT share performance in 2018.
Are REITs’ Negative Price Response to Interest Rate Increases Justified?
REIT share prices have often responded negatively to rising interest rates, at least since 2013. Is this warranted by the outlook for their future earnings?
2018 Return Expectations for REITs
For REIT investors 2017 turned out to be a very normal year—but that was a huge disappointment given the “irrational exuberance” that investors in some other parts of the stock market enjoyed. So how can we develop empirically-based REIT return expectations for 2018?