Industrial Sector

The macroeconomy and real estate markets had a good performance in 2017. That may well continue into 2018, but there are several risks that might cause a change in the outlook.

Commercial property prices have risen steadily since the beginning of the recovery from the Great Financial Crisis. Continued price gains, however, at some point begin to raise warning flags.

The correlation between REITs and the broad stock market has always been relatively low because REIT returns are driven by the real estate market cycle whereas returns for most other equities are driven by the much shorter business cycle.