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.
The Evolving Real Estate Landscape and REIT Indexes
Over the past 10 years, we have seen dramatic changes in the composition of REIT equity market capitalization.
REIT Property Acquisition Activity Heats Up
Acquisition activity in the second quarter was robust across most property sectors.
REITs Show Largest Weekly Gain Since Early March
Last week’s increase brought the year-to-date return to 32.0%.
Jobs Recovery and Return-to-office Slowed by Delta Variant
Total payroll employment rose 235,000 in August, the slowest since last January and far behind the monthly average of 636,000 between January and July.
REITs Rose Again Last Week
REITs have increased seven out of the past eight weeks.
REITs Edged Up Last Week
Data centers, infrastructure, and self storage REIT sectors all had weekly returns exceeding 2.0%.
Do Homeowners Need REIT Investments?
Analysis shows REIT long-term returns outpaced home ownership returns, even accounting for the imputed value of rent.
E-Commerce Share of Retail Sales Continues to Decline
Total retail sales fell 1.1% in July, a larger-than-expected decline that signals some important shifts in the underlying landscape for retail sales.
REITs Edged Lower Last Week
Broader markets rose, with a 0.6% return on the Russell 1000 and a 0.8% return on the S&P 500.
REIT Stocks Rose for the Fifth Straight Week
This is the longest winning streak since the six consecutive weekly gains from March 26 through April 3.
Diversity and Inclusion Tops the List of Topics Investors Asked Equity REITs in 2020
Among survey respondents more than 62% of REITs by equity market capitalization indicated that they experienced an increase in ESG reporting requests from investors between 2019 and 2020.
Fed Senior Loan Officer Survey: Banks See Improvements in Commercial Real Estate
The Federal Reserve’s Senior Loan Officer Survey for August 2021 indicates that conditions in commercial real estate markets are improving.