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.
Nareit’s Mid-Year Report Offers Insights into U.S. and Global Trends
2023 Mid-year Report: Diversification Opportunities - REIT and Real Estate Performance Around the Globe
On a global basis, data centers, industrial, and self-storage have been the strongest performing sectors in 2023.
2023 Mid-year Report: REIT Trends in Property Sector Allocations by Actively Managed Real Estate Funds
Actively managed funds represent 7% of REIT market capitalization and they have been a key element in REITs’ long-term success because of their combined real estate and equity investment expertise and analysis.
REITs Post Strongest Monthly Performance Since January
Timber, office, and data centers led with returns of 15.9%, 10.4%, and 7.3%, respectively.
Implementation of a Completion Strategy Helps COAERS Attain Diversification and Outperformance in Its Real Estate Portfolio
The City of Austin Employees' Retirement System (COAERS) investment team noted that its real estate allocation could be improved dramatically by adding a portfolio completion strategy of REITs, which was historically implemented solely through an open-ended, core, private markets fund system.
FTSE Nareit U.S. Real Estate Index Series Launches Gaming REIT Sector
Effective with the 2023: Q2 quarterly review, the FTSE Nareit U.S. Real Estate Index Series has launched a property sector devoted to gaming REITs.
Real Estate Cap Rates and the Slow Wheels of Progress
Differences in cap rates capture the divergence that occurred between U.S. public and private real estate markets in 2022, with public real estate cap rates (REIT implied) higher than their private real estate counterparts (transaction and appraisal).
U.S. Public Equity REITs Insulated from Mortgage Market Turmoil
The commercial real estate (CRE) mortgage market has changed dramatically since the end of 2021. For many real estate investors, gone are the days of low-cost, readily available property financing.
Public and Private Real Estate: Divergences, Harbingers, and Opportunities
With REIT implied capitalization (cap) rates significantly higher than private real estate transaction cap rates, the attractiveness of public equity REITs has increased.
REITs Complete Institutional Real Estate Portfolios: A Case Study of the Korean National Pension System
One of the dominant themes among institutional real estate investors over the past few years has been the shift toward “alternative” property types.
REITs Post Narrow Gain in April
The FTSE Nareit All Equity REITs Index posted a total return of 0.3% in April and the FTSE EPRA Nareit Global Extended Index rose 1.5%.
REITs Raised More Than $14 Billion Through Capital Offerings in Q1 2023
In 2023, four deals to acquire publicly-listed REITs have been announced, with a total deal value of $20.4 billion and 97% of the value reflecting acquisitions by listed REITs.