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.
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.
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.