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 Continue to Offer Good Value to Real Estate Investors
The lingering public-private real estate valuation divergence has been disruptive, but it continues to offer potential buying opportunities for investors.
Going, Going, Not Gone: Public-Private Real Estate Valuation Divergence Continues
Although the lingering CRE valuation divergence has been disruptive, it has created opportunities for investors and benefited REITs.
REITs Play Integral Role in Target-Date Funds at Every Stage of Retirement Savings
The growing use of target-date funds (TDFs) remains the dominant investment-related trend in the defined contribution and individual retirement account markets, and REITs continued to be a critical component of TDFs in 2024.
Global Real Estate Outperformed Stocks in February
The FTSE EPRA Nareit Developed Extended Index rose 2.8% in February and was up 4.6% on a year-to-date basis at month-end.
Real Estate Supply-Demand Imbalances Seeking Equilibriums
Space market fundamentals can differ markedly across property types
Property Fundamentals Showing Signs of Stabilization
While today’s property market tends to be characterized by supply–demand imbalances, declining/low occupancy rates, and moderating/low rental growth rates, signs of stabilizing fundamentals have started to percolate.
Digital, Health Care Led in Q4 2024 Actively Managed Real Estate Fund Tracker
Nareit tracks quarterly investment holdings for the largest actively managed real estate investment funds focusing on REIT investment for insights into expert investor sentiment.
The Changing Relationship Between REIT Performance and U.S. 10-Year Treasury Yields
While publicly traded equity REIT performance has recently been exhibiting an inverse relationship with U.S. 10-year Treasury yield movements, this has not always been the case.
REITs Outperform in February, Led by Diversified, Telecom, Health Care Sectors
The FTSE Nareit All Equity REITs Index posted a total return of 4.2% in February as broader market equities fell, with the Russell 1000 declining 3.2% and the Dow Jones U.S. Total Stock Market falling 3.1%.
Tracking the Expanding Global Real Estate Universe
FTSE EPRA Nareit indices offer exposure to new and emergent property sectors.
REITs Typically Post Positive Returns in Rising and Falling Interest Rate Environments
Rising interest rates worry real estate investors. Their fears are rooted in the view that interest rate increases will result in rising cap rates and, all else being equal, declining property values.
What We Have Learned from 25 Years of CRE and REIT Performance Data
REITs are real estate with attractive performance attributes. In research sponsored by Nareit, CEM Benchmarking took a comprehensive look at investment allocations and realized investment performance across 12 asset classes over a 25-year period (1998–2022) using a dataset covering more than 200 U.S public- and private-sector pensions with $4.1 trillion in combined assets under management (AUM).