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.
REITs & Inflation Outlook 2022: What to Know
Early indications from the past two quarters suggest REITs are likely to perform well if we enter into a sustained inflationary environment.
REITs Declined Narrowly Last Week
Year-to-date total returns for All Equity REITs stands at 30.1% and 32.6% for Equity REITs.
REITs Declined on Omicron Variant Concerns Last Week
The FTSE Nareit All Equity REITs Index was down 1.3% for the week, a more modest decline than the 2.3% drop in the Russell 1000.
REITs Edged Higher Last Week
Year-to-date total returns for All Equity REITs stands at 31.9% and 35.2% for Equity REITs.
REITs Supported 2.9 million Jobs in 2020
EY’s latest REIT Economic Contributions report estimates REITs supported 2.93 million full time equivalent jobs in the U.S in 2020, producing $197.0 billion in labor income.
REITs Declined Narrowly Last Week
Year-to-date total returns for All Equity REITs stands at 31.8% and 34.9% for Equity REITs.
REITs Rose Last Week
The FTSE Nareit All Equity REITs index rose 1.5% for the week ending Nov. 5 while the FTSE Nareit Equity REITs index rose 1.8%.
Mergers Highlight U.S. REIT Capital Market Activity
In 2021 REIT capital market activity has been highlighted by the announcement of eleven REIT mergers.
Return-To-Office Rebounding After Delta Variant Slowdown
The return-to-office of employees who have worked from home during the pandemic is rebounding, after a pause during the Delta variant surge of COVID-19.
REITs Rose Last Week
Last week’s increase raised the year-to-date returns above 30%, to 30.2%.
Robust Rebound Lifted REITs Last Week
Last week’s gain, which came after five consecutive weeks of downward moves, brought year-to-date returns to 27.1%.
Disappointing September Jobs Report Suggests Pause in Return-to-Office
Many of the 19.6 million employees who continue to telecommute because of the pandemic are likely to return to the office in the first half of next year.