Market Commentary Blog

Conditions worsened significantly over the past week, both in terms of the expected economic impact of the disruptions to activity in response to the virus, and also in stock market returns.

REITs have also prepared themselves for economic uncertainty by building up their stock of cash and cash-like assets and maintaining substantial unused lines of credit.

Stock market declines due to the coronavirus crisis are in the headlines, but the main risks in the weeks ahead are elsewhere: in cash flows and liquidity shocks; resiliency of the financial system; and impact on economic fundamentals.

Different property sectors face different exposures to the coronavirus crisis, and REIT returns reflect those differences.

The advance of the coronavirus within the United States has prompted a corresponding spread of actions aimed at slowing the pandemic. These actions will cause a noticeable reduction in GDP, but how large might it be?

Nareit will fully refund fees already paid by registrants and sponsors in the coming days.

Through the year-to-date period as of the end of February, REITs outperformed the Dow Jones U.S. Total Stock Market, the large cap S&P 500 and the small cap Russell 2000.

With everyday life upended by the coronavirus for the foreseeable future, the commercial real estate industry is shifting on a daily basis.

Nareit’s annual update of REIT property counts and estimated gross asset values by state and property sector is now available on the revamped REITs Across America website.

Nareit estimates 86.6 American adults, or 44% of American households, own REIT stocks directly or indirectly through mutual funds, ETFs or target date funds.

Rising GDP and the job growth that goes with it are the most important determinants of demand for real estate, as businesses need more office space for workers and industrial space to produce, store and ship goods.

From 2016 to 2018, the jobs equivalent contribution from REITs is up an estimated 19.0%.