The Market Commentary blog on reit.com presents analysis of the macro- and micro-economic fundamentals impacting the REIT and commercial real estate industry. The Nareit economics team offers their commentary on the state of the market, the outlook for commercial real estate and breaking macroeconomic news. The opinions set forth here are solely those of its author(s), and do not necessarily reflect the views of the Nareit or its membership.
How Much are Americans Working from Home?
Evidence is emerging that hybrid or remote work is becoming a permanent feature for many office workers.
Global Real Estate Underperforms Broader Markets as Volatility Persists
The FTSE EPRA/Nareit Global Real Estate Index Series underperformed broader markets in May as turbulent trading conditions persisted.
REIT Earnings Review: 2019Q4-2022Q1
Charting the change in REIT earnings, represented as funds from operations over the course of the pandemic.
REITs Underperformed Broader Markets in Another Volatile Month for Equities
REITs underperformed broader markets for the month of May but outperformed on a year-to-date basis as equity markets continued to be buffeted by heightened volatility.
REITs Post Record High FFO in the First Quarter of 2022
REIT earnings, as measured by funds from operations, increased 30.9% from the previous year to a record high of over $18 billion in the first quarter of 2022, according to the Nareit T-Tracker®.
Commercial Real Estate Performance Remained Strong in the First Quarter of 2022
Commercial real estate fundamentals continue to point to strong performance in the retail, multifamily, and industrial sectors.
REIT Operating Performance Remains Strong Against High Inflation
The Bureau of Labor Statistics released the April 2022 Consumer Price Index data showing a much smaller monthly increase in prices in April than in March.
Global Real Estate Outperforms Broader Market During a Turbulent Month
The FTSE EPRA/Nareit Global Real Estate Index Series outperformed broader markets in April.
Strong Job Market Puts Upward Pressure on Wages
March marked 23 straight months with hires greater than separations and the March JOLTs report showed private job openings are in excess of 10.5 million, the highest level ever recorded.
REITs Outperform in a Tough Month for Equities
Disappointing earnings from the some of the largest companies outside of the REIT space weighed heavily on REITs at the close of the month.
Rising Rates Slow REIT Debt Issuance in First Quarter
U.S. REITs raised $25.4 billion from IPOs and secondary debt and equity offerings in the first quarter of 2022.
REIT Performance Holding Strong Against Record High Inflation
Despite continuing high inflation, REIT returns continue to outpace returns for the S&P 500 on an annualized basis and REIT operating performance growth has exceeded price growth in 2021.