Nareit Market Commentary

The Market Commentary blog on 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.

  • 2/14/2019

    REIT Property Sectors: Total Return and Diversification Over Short- and Long-term Horizons

    REITs have delivered a long-term total return to investors that generally matches and often beats broad market aggregates.
  • 2/8/2019

    Commercial Property Prices Edged Higher in 2018

    Commercial property prices edged higher in 2018, increasing 1.8 percent over one year earlier.
  • 2/7/2019

    REITs Start 2019 on a Strong Note

    January was the strongest monthly performance for REITs since October 2011.
  • 1/25/2019

    Demand for Commercial Real Estate Shows No Signs of Slowing

    Commercial real estate markets maintained momentum through the end of 2018, as net absorption continued at a high level across major property types.
  • 1/16/2019

    Update on the Government Shutdown and REITs

    In terms of information about the economy, the retail sales report for December and business inventories report for November were early casualties, as these releases planned for Jan 16th were delayed due to the Census Bureau being shuttered by the lack of funding.
  • 1/10/2019

    Downside Beta and Upside Beta: REITs Have Generally Protected Against Stock Market Declines

    REITs have generally protected against stock market declines, with downside beta typically well below one; moreover, their upside beta has usually been higher, giving investors a chance to “have it both ways.”
  • 1/4/2019

    In the Wake of Stock Market Turmoil: Returns, Volatility, Correlation, Beta, Diversification Benefits, and Forward Expectations for REITs

    December 2018 was bitter for investors. Total returns in the broad REIT market were -7.73 percent—but that was good news compared with large-cap stocks (-9.03 percent according to the S&P 500), small-cap stocks (-11.88 percent for the Russell 2000) and especially small-cap value stocks (-12.09 percent).
  • 1/2/2019

    The Government Shutdown, Financial Markets and REITs

    The government appears to be settling in for an extended partial shutdown, at least as of January 2. If the shutdown persists beyond the next few days, however, the closure of several key agencies that produce statistics on the U.S. economy could begin to have an impact on financial markets, including REITs.
  • 12/14/2018

    New Green Real Estate Index Provide Sustainability Benchmark

    Investors with an interest in ESG and sustainability have a new tool, the FTSE EPRA Nareit Green Real Estate Index Series that allows investors to integrate ESG considerations in their portfolios of listed real estate.
  • 12/5/2018

    REIT Leverage Declines to an All-Time Low

    REIT leverage ratios declined on both a book-value and market-value basis in the third quarter, as prudent balance sheet management reduced the sector’s exposure to interest rates.