Published in the January/February 2012 issue of REIT magazine.
A new year typically symbolizes a fresh start. The truth, though, is that there is no magic reset button to begin things anew. Simply because the calendar is turning to 2012 doesn’t mean the same economic worries hanging over the economy in 2011, both at home and abroad, have subsided.
Like every other industry on the planet, REITs are dealing with a number of obstacles at the moment. Unemployment is high, so consumer confidence is low. Worries about the European financial system are spreading concern for the health of markets around the globe. The political situation in Washington remains difficult.
REITs have a strong propensity to bounce back from problems like the ones they’re currently facing. Like CubeSmart (NYSE: YSI), which is profiled in this edition of REIT magazine, they also can reinvent themselves when called upon.
Despite the uncertainty and skittishness overhanging markets around the world, history has shown that the REIT approach to real estate investment is durable. Problems in the Greek debt market won’t change that.