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 Post Robust Earnings and Dividend Payments In Q2
Equity REITs posted robust earnings in the second quarter, according to the NAREIT T-Tracker®, with total FFO of all listed equity REITs increasing 7.1 percent, representing a 10.3 percent gain from one year ago.
Resurgent Demand for Rentals Buoys Multifamily REITs
The biggest question for the apartment sector lately has been whether the bulging pipeline of new supply would swamp the pent-up demand that accumulated during the Great Recession. Indeed, rental demand flagged during the winter as construction reached new highs, feeding worries about the outlook.
Property Values Increased 4.1% in July; Strongest Appreciation in West Region Office Segment
Investment real estate values increased by +4.1% during July 2016 according to the FTSE NAREIT PureProperty® Index Series, which provides the earliest measurement of changes in the market values of properties held for investment purposes.
Regional Unemployment Update: Mostly Good News, but Weaker in Oil States
The most recent data on state unemployment rates from the Bureau of Labor Statistics show that, compared with April, unemployment decreased in 22 states, increased in 11 states and was unchanged in 18 states.
Post-Brexit: UK and Other European Returns Look Ugly while US Listed Equity REITs Come Out Looking Great
The continued fallout from the UK’s vote to exit the European Union has punished investors with exposure not only in that country but in the rest of Europe too. No assets have been hit harder than British real estate, but investors in the British stock market, European stocks, and European real estate have suffered as well.
REITs and Real Estate Get a Second Wind
Demand continues to exceed supply in real estate markets, leading to lower vacancies, rising rents and accelerating NOI. There are few signs of any meaningful slowdown ahead.
New Online Tool Facilitates Quicker Understanding of Real Estate Market
A new tool may help you better understand real estate markets, focus on market segments or time periods, or even put together better presentations and exhibits.
Property Values Increased 4.4% in June; Strongest Appreciation in South Region Retail, Midwest Region Retail, and Midwest Region Apartments
Investment real estate values increased by +4.4% during June 2016 according to the FTSE NAREIT PureProperty® Index Series, which provides the earliest measurement of changes in the market values of properties held for investment purposes. The South region saw the strongest appreciation at +5.1% but properties appreciated strongly in other regions as well with implied values up +4.8% in the Midwest, +4.0% in the East, and +3.6% in the West.
U.S. Stock Volatility Spiked. U.S. REIT Volatility Didn’t.
Over the two market days following the Brexit vote U.S. stock market volatility more than doubled, from 9.9% (below its inter-quartile range) to 22.0% (above its IQR)—but U.S. REIT market volatility nudged up by barely one-seventh, from 9.6% to 10.9%.
Dispelling Myths About REIT Property Sales and Purchases
Equity REITs significantly expanded their holdings of income producing real estate in recent years, buying a total of $260 billion of commercial property between 2011 and 2015.
REITWeek 2016: Key Takeaways From This Year’s Conference
A record number of investors, analysts and media attended REITWeek 2016 in New York to meet with management teams and check the pulse of the industry. Here are several key takeaways from this year’s conference.
Property Values Increased During May, Especially in the South Region
Investment real estate values increased by +0.57 percent during May 2016 according to the FTSE NAREIT PureProperty® Index Series, which provides the earliest measurement of changes in the market values of properties held for investment purposes. The South region saw the strongest appreciation at +2.02 percent.