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.
Commercial Real Estate Shows Across-the-Board Improvement in 2021:Q4
Robust demand from tenants contributed to declining vacancy rates across most property types, and faster rent growth.
REITs Fell in January
REITs fell sharply in January 2022 as the Omicron variant of the COVID-19 Pandemic persisted and the Federal Reserve indicated its readiness to tighten monetary policy.
Global Real Estate Posts Strong Returns in 2021
The FTSE EPRA/Nareit Global Real Estate Index Series performed strongly in 2021, with the Developed index posting a total return of 27.2%, while the Global index, which includes both Developed and Emerging Markets, returned 23.0%.
CRE Markets Gained Speed Through Year-end 2021
The recovery in commercial real estate markets accelerated throughout 2021, especially in the final months of the year.
Solid Balance Sheets Prepare REITs for Rising Interest Rates
A close examination of REIT financial exposures suggests that increases in interest rates may have little impact on their operating performance.
REITs Own 503,000 Properties in the U.S.
At the end of 2020, U.S. public REITs owned an estimated 502,937 properties and 15.1 million acres of timberland across the U.S.
How Does Inflation Affect REIT and Stock Performance?
In 2021, REITs outperformed the S&P 500 by 12.6 percentage points with an annual return of 41.3%.
REITs Post Second-Strongest Year on Record in 2021
The FTSE Nareit All Equity REITs index performed strongly in 2021, with a total return of 41.3%, while the FTSE Nareit Equity REITs index rose 43.2%.
Increased Number of Business Applications Shows Positive Signs for Retail Sector
Throughout the latter part of 2020 and through 2021, new businesses have been forming rapidly, especially in the retail sector.
Top 10 Things to Watch in Commercial Real Estate in 2022
The year ahead is likely to see further improvement in commercial real estate markets as the economy continues to recover from the COVID-19 pandemic. Here are the top ten developments to follow.
REITs Rose Last Week
All property sectors met or exceeded their prior week’s performance as REITs posted their strongest weekly performance since Oct. 15.
Global REIT and Listed Real Estate Performance During the Pandemic
REITs and publicly-listed real estate around the world were hit hard by the onset of the COVID-19 pandemic, but have generally rebounded strongly.