Market Analysis & Research

REITs have been little affected by the turmoil in the broader stock market in recent weeks, especially among technology stocks.

Since most economic activity takes place within a commercial real estate structure, these changes will impact how people use commercial real estate in the future.

The FTSE Nareit All Equity index had a total return of negative 2.2% for the week, and is down 2.0% so far in September.

The following additions, deletions and classification changes were agreed to and will be applied after the close of business on Friday, Sept. 18, 2020.

The FTSE Nareit All Equity REITs index was down 0.7% last week, while tech stocks pulled major indices much lower, with the Nasdaq down 3.3% and the S&P 500 falling 2.3%.

The CMBS delinquency rate continued to decline in August as the reopening of the economy helped revive cash flows at some troubled tenants.

Valuations in the overall market have edged down 1.4% over the past three months, and are little changed year-to-date.

Last week’s gains trimmed the declines so far this year to single digits, bringing the year-to-date total return to -9.0%

Nearly every recent housing market indicator has shown significant increases for July, and were above consensus expectations.

One of the keys to finding opportunities in the current real estate landscape is by differentiating between transitory and permanent changes in consumer behavior and the use of real estate.

The FTSE Nareit All Equity REITs index was down 0.3% in terms of total return.

Given that rent collections in the industrial, office, and healthcare sectors have stabilized at high levels, the August survey focuses on three property subsectors: apartments, free standing retail, and shopping center retail.