Calvin Schnure

Senior Housing Occupancy Stable in Q3 Amid Building Boom

10/18/2017 | By Calvin Schnure

The senior housing business is in the midst of a building boom the likes of which we have not seen for a couple of decades. The current construction pipeline is 6.1 percent of the existing stock, according to the National Investment Center for Seniors Housing and Care (NIC), and the wave of new facilities coming on line has raised concerns about the sector’s fundamentals in the quarters and years ahead. Indeed, the new supply has already had some impact on the market, as the occupancy rate of senior housing properties was 88.8 percent in the third quarter.

Data Center REITs: Hosting the Cloud, Here on Earth

10/4/2017 | By Calvin Schnure

One of the more interesting developments over the past decade has been the evolution of how real estate is used by businesses and consumers. There are few sectors that exemplify these changes better than Infrastructure REITs, which own and operate cell towers, and Data Center REITs—which own modern commercial real estate that, paradoxically, is associated with hosting “cloud” computing. Data centers house the servers and network equipment that make modern communications possible, including the Internet and data transmitted by cell phones.

Construction Activity Begins to Slow, Boosting the Outlook for REITs and Real Estate

9/8/2017 | By Calvin Schnure

Has the pipeline of new building construction leveled off and perhaps begun to slow? New data suggest that it has. Rising levels of construction have been a major concern for the outlook for commercial real estate, and the latest information represents a significant turn in the outlook for new supply. REITs and other owners of commercial properties are likely to benefit from a favorable balance of supply and demand in the months ahead.

Mortgage REITs Combine Current Income, Long-term Total Return and Portfolio Diversification

8/29/2017 | By Calvin Schnure

Mortgage REITs (MREITs) are an investment in real estate finance that combine high current income with long-term total return and portfolio diversification. MREITs have delivered a 21.2 percent total return over the past year (through July, 2017), outpacing most other investments over this period. Many investors are less familiar with MREITs than their Equity REIT cousins, which own and manage portfolios of properties. This Market Commentary provides a brief overview of the sector and discusses its returns.

Commercial Real Estate Markets Have Settled in for the Long Haul

8/3/2017 | By Calvin Schnure

Commercial real estate markets appear to have settled in for the long haul. New supply and the growth of demand are roughly balanced in most property sectors, vacancy rates are stable and rents growing modestly. The latest data from CoStar on net absorption and completions during 2017:Q2 help alleviate earlier fears that a supply wave would flood the market. Instead, supply and demand appear closely matched—although the retail property and office markets did see a bit of an uptick in vacancy rates.

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