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 Continue Strong Performance in 2021
This is the fourth week out of the past five that REITs have gained more than 1%, and last week’s increase put REITs up 4.8% for the first six weeks of the year.
REITs Had Across-the-board Gains Last Week
All property sectors rose, led by a 9.5% return for timber REITs and 6.6% for lodging/resorts.
Falling Demand for CRE Impacts Vacancies, Rents in Fourth Quarter
The pandemic left a deep mark on commercial real estate in the fourth quarter as falling demand for leased space led to a rise in vacancy rates across most property types, and rents declined.
REITs Down Slightly During a Tumultuous Week
The FTSE Nareit All Equity REITs index posted a total return of -0.7%, compared to a 3.4% loss on the Russell 1000.
GDP Trends Show Risks, Opportunities Ahead
Trends in the composition of major components of the U.S. economy are the complete reverse of past recessions.
REIT Total Returns in Positive Territory YTD
Total returns for the FTSE Nareit All Equity REITs index moved into positive territory last week, with a 1.2% weekly gain.
REITs Rebounded in Second Week of New Year
REITS rebounded in the second week of 2021, with a 1.9% total return on the FTSE Nareit All Equity REITs index that reversed most of the decline in the prior week.
REITs Declined in Opening Week of 2021
REITs declined in the opening week of 2021, with a -2.4% total return on the FTSE Nareit All Equity REITs index.
Past as Prologue: 2020 and REIT Performance in 2021
The path of the pandemic and the vaccines will continue to hold the keys for the economy and commercial real estate, and for stock markets, in 2021.
REITs Gained Slightly Last Week
REIT share prices rose slightly during the week ended December 18, with the FTSE Nareit All Equity REITs index posting a weekly total return of 0.5% and a year-to-date return of -6.9%.
Outlook for REITs and Real Estate in 2021 sees Recovery Ahead
CRE markets, and the economy as a whole are bolstered by the solid fundamentals that were in place when the pandemic hit, in sharp contrast to prior recessions.
REITs Trimmed Recent Gains Last Week
REIT share prices fell during the week ended December 11, with the FTSE Nareit All Equity REITs index posting a total return of -2.5%.