REITs Poised to Capitalize Globally, Sumner Says

7/2/2010 | By

Even though the REIT model of commercial real estate ownership has yet to become a major force on a global scale, momentum for it should build in the coming years, according to Patrick Sumner, head of property equities with Henderson Global Investors.

Based on the trends in ownership of commercial real estate worldwide, REITs still have a ways to go, Sumner says. However, Sumner notes that he is anticipating a flow of REIT initial public offerngs in coming years, as banks and other property holders look to unload distressed assets. The general strength of their balance sheets puts REITs in position to capitalize on these opportunities, he says.

On a global scale, Sumner points out that the lack of oversupply of space should be cause for optimism among commercial real estate investors. The overall lack of financing should continue to constrain development, according to Sumner.