Industry Performance

The biggest question for the apartment sector lately has been whether the bulging pipeline of new supply would swamp the pent-up demand that accumulated during the Great Recession. Indeed, rental demand flagged during the winter as construction reached new highs, feeding worries about the outlook.

Investment real estate values increased by +4.1% during July 2016 according to the FTSE NAREIT PureProperty® Index Series, which provides the earliest measurement of changes in the market values of properties held for investment purposes.

The continued fallout from the UK’s vote to exit the European Union has punished investors with exposure not only in that country but in the rest of Europe too.  No assets have been hit harder than British real estate, but investors in the British stock market, European stocks, and European real estate have suffered as well. 

A new tool may help you better understand real estate markets, focus on market segments or time periods, or even put together better presentations and exhibits.

Investment real estate values increased by +4.4% during June 2016 according to the FTSE NAREIT PureProperty® Index Series, which provides the earliest measurement of changes in the market values of properties held for investment purposes.  The South region saw the strongest appreciation at +5.1% but properties appreciated strongly in other regions as well with implied values up +4.8% in the Midwest, +4.0% in the East, and +3.6% in the West.

Over the two market days following the Brexit vote U.S. stock market volatility more than doubled, from 9.9% (below its inter-quartile range) to 22.0% (above its IQR)—but U.S. REIT market volatility nudged up by barely one-seventh, from 9.6% to 10.9%.

Equity REITs significantly expanded their holdings of income producing real estate in recent years, buying a total of $260 billion of commercial property between 2011 and 2015. 

Investment real estate values increased by +0.57 percent during May 2016 according to the FTSE NAREIT PureProperty® Index Series, which provides the earliest measurement of changes in the market values of properties held for investment purposes.  The South region saw the strongest appreciation at +2.02 percent.