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 Reported $15.8 Billion Total FFO in Q3: Nareit T-Tracker
Earnings growth broadened across the REIT sector in the third quarter, with 65.9% of REITs reporting higher FFO than one year ago.
Strong Demand for Apartments Leads Mixed CRE Markets in Q3
The economic fundamentals for CRE markets maintained momentum in Q3, with GDP growth on trend and modest job gains.
Recession Risks, Commercial Real Estate and REITs
How likely is it that the current slowing could lead to a recession? How exposed are real estate markets and REITs to deteriorating macroeconomic fundamentals?
REITs and Inflation Protection
Real estate rents and values tend to increase when prices do, due in part to the fact that many leases are tied to inflation.
Commercial Property Prices: Risk or Reward?
Commercial property prices can be a double-edged sword. When they are rising, they can provide investors with solid capital gains above and beyond the income received from rents. But if they rise too rapidly and get ahead of fundamentals, investors risk losses from falling prices.
What are Workers Telling Us About the Outlook for Real Estate?
The JOLTS report on labor market turnover can help shed light on the outlook for the economy and for real estate.
REIT Interest Exposures are Down—Especially in the Tails
REITs have strengthened their balance sheets over the past decade, with average leverage and interest expense to NOI falling to historical lows. Averages, however, don’t reveal what is going on in the tails and if there are hidden pockets of risks.
REITs Ramp Up Equity Issuance as Outlook Brightens
REITs issued $19.2 billion in secondary offerings of common equity during the first half of 2019, which is more than they raised during the entire year of 2018.
REITs Have Limited Exposure to WeWork
Data from CoStar and S&P Global Market Intelligence show REITs have very little exposure to WeWork.
Commercial Real Estate and REITs Get a Second Wind
It is important during periods of market volatility and shifting economic fundamentals for investors to recall the concerns that not long ago dominated discussions about the outlook.
Inverted Yield Curves, the Economy and REITs
An inverted yield curve has preceded past recessions, yet other indicators today carry a stronger signal of a resilient economy.
Will the Growing Trade War Clouds Rain on REITs and Real Estate?
The economic forces that affect the demand for domestic U.S. commercial real estate differ from those affecting global corporations, and stock returns reflect these differences.