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 and Baseball
One of the more common ways to describe the outlook for REITs is to pick which inning of a ballgame corresponds to today’s REIT market. For the past several years, most observers have said the market was in the seventh or eighth inning.
Net Acquisitions Rise in Q2 with $5.9 Billion in New Net Property Investment
Earnings remained positive for REITs into 2019, with FFO totaling $16.5 billion in the second quarter.
Economic Activity Slows to Trend in Q2
The economy is returning to its trend growth after getting a boost from the 2017 tax cuts.
Mid-Year Outlook for Commercial Real Estate and the Economy
For all the hand-wringing six months ago, the first half of the year turned out pretty well for commercial real estate markets and REITs.
CRE Expansion at Mid-year: No End in Sight
Nareit economist Calvin Schnure reviews the latest data on supply and demand conditions, and vacancy rates and rent growth.
REIT Debt: The Long and the Short of It
REITs have extended overall debt maturities and reduced leverage over the past decade, and access the commercial paper market from a position of balance sheet strength.
Supply-Demand Fundamentals Favor Apartment REITs
The occupancy rate at apartment REITs has continued to move to new record highs during this building boom.
Total Size of U.S. Commercial Real Estate Estimated Between $14 and $17 Trillion
Nareit completed its third annual round in estimating the size of U.S. commercial real estate, and find that the total dollar value in 2018 was $16.0 trillion, with lower and upper bounds of this estimate of $14.4 to $17.0 trillion.
REITs are an Investment Grade Sector
REITs have made important changes over the past decade in their overall leverage ratios, as well as the composition and structure of their debt.
REITs in the Community: CorEnergy and Nareit Participate in U.S. Congressional Roundtable on TRIA
Nareit was part of a TRIA roundtable in Kansas City on May 31.
REIT Earnings Rose to $15.9 billion in Q1
Funds from operations of all Equity REITs increased to $15.9 billion in the first quarter, according to the Nareit T-Tracker. Occupancy rates remain near the record highs set last year.
REIT Usage and Target Date Funds
In 2003, the share of TDFs with REIT exposure was only 50%, while in 2018, 97% of them invest in REITs. In fact, 60% of TDFs have a dedicated REIT sleeve within their asset allocation.