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 Owned Over 520,000 Properties in 2018
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 Research Shows Increase in REIT Ownership
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.
Solid Job Market Signals Continued REIT Performance
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.
REITs’ Economic Contribution Supports Nearly 2.4 million Jobs in 2018
From 2016 to 2018, the jobs equivalent contribution from REITs is up an estimated 19.0%.
Economic Fundamentals for Real Estate Remain Solid
A moderate supply of new buildings is helping to keep vacancy rates low and reduces risks of a market downturn due to excess construction in the months and years ahead.
REITs Outperform Broad Market in January
Compared against broad market benchmarks, REITs outperformed the Dow Jones U.S. Total Stock Market by 1.4 percentage points, large cap S&P 500 by 1.3 percentage points, and the small cap Russell 2000 by 4.47 percentage points in January 2020.
2019 Total Return Index Performance
The FTSE Nareit U.S. Real Estate Index Series posted positive total return performance across all property sectors in 2019.
U.S. REIT Mergers & Acquisitions
In 2019, completed and pending mergers and acquisitions of U.S. REITs declined to $25.9 billion.
REITs Tap At-the-Market Programs to Raise $3.4 billion in Q3
Equity REITs raised $3.4 billion in the third quarter of 2019 through at-the-market programs, just shy of a record high.
REITs in the S&P 500
REITs were first deemed eligible for inclusion in the S&P 500 in October 2001.
What to Watch for REITs and the Economy in 2020
Today’s economic environment has no historical precedent. What markers can we rely on as the economy and commercial real estate move into uncharted waters?
November Jobs Report Shows it’s not a “Late Cycle” World
Nonfarm payrolls rose 266,000 in November, well above consensus forecasts and the strongest gain since January.