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.
REIT Skilled Nursing Tenants Have High Quality Measure Ratings
Skilled nursing facilities (SNFs) that are housed in properties leased from REITs tend to have better quality measures and ratings compared with those that rent non-REIT properties or own their buildings.
GRESB Shows REITs Continue to Improve Environmental Performance in 2022
GRESB, the Global Real Estate Sustainability Benchmark, has released its 2022 data on environmental stewardship, social responsibility, and good governance for REITs.
REITs Recovered after Early Losses in March
The FTSE Nareit All Equity REITs Index ended a tumultuous March down 1.7% for the month, and the FTSE EPRA Nareit Global Extended Index declined 2.3%.
REITs Offer Diversification and Timeliness
Recent research by Nareit shows that REIT returns have tended to bounce back—and even surge—after significant public and private real estate market divergences.
REITs Complete Institutional Real Estate Portfolios: A Case Study
One of the dominant themes among institutional real estate investors of the past few years has been the shift toward “alternative” property types.
Core Property Sector Fundamentals Generally Solid in 4Q22, Some Evidence of Softening
The industrial, retail, and apartment property types have maintained occupancy and four-quarter rent growth rates akin to or higher than their respective pre-pandemic levels.
Office Occupancy Continues to Rise Over 50%
Many employers are eager for pre-pandemic, in-office operations to resume, but many workers remain reluctant to return.
REITs Remained Positive for the Year, but Declined with Broader Markets in February
On a year-to-date basis, the FTSE Nareit All Equity REITs Index is up 3.5% and the FTSE Nareit Equity REITs Index is up 5.4%.
REIT Returns Tend to Rise, and Even Surge, After Real Estate Market Divergences
In the third quarter of 2022, the FTSE Nareit All Equity Index and NCREIF Fund Index–Open End Diversified Core Equity posted rolling four-quarter total returns of -16.3% and 22.1%, respectively.
REITs “Complete” Real Estate Portfolios
The U.S. economy has been marked by mixed economic growth results, elevated inflation, and higher interest rates.
REIT Investment Increases Staffing Time at Skilled Nursing Facilities
New research shows that REITs target high performing operators for investment and that skilled nursing operators increase staffing after becoming REIT tenants.
REITs Post Strongest Monthly Performance Since 2019
All property sectors were positive in January, led by lodging/resorts at 17.1%, industrial at 13.7%, and data centers at 13.2%.