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.
Global Real Estate Took a Breather in January
The FTSE EPRA Nareit Developed Extended Index fell 4.5% in January, and posted a total return of 16.0% since Oct. 19, 2023.
Mind the Gaps: Valuation Convergence and REIT Outperformance
Nareit research has shown that REIT total returns have tended to bounce back and even surge after periods of significant REIT underperformance relative to private real estate.
Disciplined Balance Sheets Insulate REITs From Higher Rates
No Fed interest rate cuts? No problem: With their disciplined balance sheets, U.S. public equity REITs may not be immune from higher interest rates, but they are reasonably well-insulated from them.
REITs Declined in January
The FTSE Nareit All Equity REITs Index declined 4.9% in January. Broader markets posted narrow gains as the Russell 1000 rose 1.4% and the Dow Jones U.S. Total Stock Market rose 1.1%.
Increased Equity Investment Boosts Number of Americans Invested in REITs to Nearly 170 Million
New research by Nareit estimates that 168 million Americans, or roughly 50% of American households, were invested in REIT stocks in 2023.
Global Real Estate Rebounded in 2023: Q4
The FTSE EPRA Nareit Developed Extended Index rallied in the fourth quarter of 2023 as bond yields declined in the United States and other developed markets.
REITs Raised $5.2 Billion Through Secondary Offerings in 2023: Q4
U.S. REITs raised $5.2 billion from debt and equity offerings in the fourth quarter of 2023; note that this total is preliminary and will be revised upward when ATM program usage data become available.
REITs Rebounded in the Fourth Quarter as Treasury Yields Declined
REITs Rebounded in the Fourth Quarter as Treasury Yields Declined
REITs Supported 3.4 Million Jobs in 2022
REITs supported an estimated 3.4 million fulltime equivalent (FTE) jobs in the U.S. in 2022, producing $263 billion in labor income.
REITs Post Strongest Monthly Return Since January as Treasury Yields Fall
The FTSE Nareit All Equity REITs Index rose 11.9% in November.
The Diverse Landscape of REIT-Based Real Estate Investment
Global REIT and Real Estate Performance and 2024 Expectations