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.
Actively Managed Real Estate Fund Tracker: 2023Q4
Nareit tracks quarterly investment holdings for the 27 largest actively managed real estate investment funds focusing on REIT investment for insight on expert investor sentiment.
REITs Help ERS Achieve Portfolio Geographic and Property Sector Diversification
This is a guest commentary written by Annie Xiao, portfolio manager at the Employee Retirement System of Texas (Texas ERS).
REITs Rose in February as Data Centers Outperform in 2024
The FTSE Nareit All Equity REITs Index rebounded from a weak January, rising 1.9% in February. REITs underperformed broader markets as the Russell 1000 and Dow Jones U.S. Total Stock Market both rose 5.4%.
REIT Allocations in Pension Funds Increase
Nareit analysis of data from Preqin, a financial research firm that tracks investments in alternative assets, indicates that the use of REITs by pension plans has been increasing, particularly among the largest, most sophisticated plans.
REITs Continue to Improve GRESB Scores
GRESB, an independent organization providing validated sustainability performance data and peer benchmarks for investors and managers, has released its 2023 Real Estate Assessment, which measures the sustainability performance of individual real estate portfolios based on self-reported data.
Hike, Stop, and Bounce: REIT Performance After Monetary Policy Tightening Ends
Under Pressure: Strength of CRE Property Fundamentals Continue to Wane
Data from CoStar highlight the current state of the commercial real estate market.
Supply-Demand Imbalances Diminish Strength of Property Fundamentals
Space market fundamentals can differ markedly across property types. Net absorption (demand) and net deliveries (supply) for the four traditional property types (retail, apartments, industrial, and office) highlight the ups and downs of the space markets and can illustrate excess net demand (net absorption less net deliveries) for each sector.
Global Real Estate Took a Breather in January
The FTSE EPRA Nareit Developed Extended Index fell 4.5% in January, and posted a total return of 16.0% since Oct. 19, 2023.
Mind the Gaps: Valuation Convergence and REIT Outperformance
Nareit research has shown that REIT total returns have tended to bounce back and even surge after periods of significant REIT underperformance relative to private real estate.
Disciplined Balance Sheets Insulate REITs From Higher Rates
No Fed interest rate cuts? No problem: With their disciplined balance sheets, U.S. public equity REITs may not be immune from higher interest rates, but they are reasonably well-insulated from them.
REITs Declined in January
The FTSE Nareit All Equity REITs Index declined 4.9% in January. Broader markets posted narrow gains as the Russell 1000 rose 1.4% and the Dow Jones U.S. Total Stock Market rose 1.1%.