Capital Markets

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$1.7 Trillion Earmarked for CRE Sector for 2017

A recent survey of investors conducted by CBRE indicated that a lack of liquidity in the commercial real estate (CRE) market should not be a concern. Last year, $895 billion of capital poured into commercial real estate globally. While that was down 9 percent from 2015, it was still the second-highest yearly volume for the sector since 2007, when just more than $1 trillion poured in. Plus, interest rate survey data from Trepp.

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(ULI North Texas)

Investors Going Long on Dallas/Fort Worth Office Market

Both banks and alternative lenders increasingly see the Dallas/Fort Worth market as an attractive place to deploy capital in the commercial real estate sector and remain generally bullish on the region, said panelists speaking at a ULI North Texas event focused on capital markets.

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REITs and the Latest Fed Rate Increase

For the second time in the past four months, the Federal Reserve has upped the benchmark interest rate by a quarter point to a target range of 0.75–1.0 percent. While news of the rate hike caused government bond yields to drop, REITs rallied by over 2 percent following the announcement. Plus, interest rate survey data from Trepp.

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Net Acquisition by REITs May Remain Low in 2017

Overall real estate investment trust acquisitions dwindled throughout 2016 while dispositions surged. Acquisitions for equity REITs were down 35 percent year over year, totaling $63.6 billion in 2016. The fourth-quarter volume was the lowest quarterly total since the second quarter of 2010, at just $7.9 billion. Plus, interest rate survey data from Trepp.

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Recent Articles

  • U.S. Hotel Market Fundamentals Primed for a Slowdown

    March 6, 2017

    The U.S. hotel market has experienced significant growth over the past five years, but it is looking at a substantial slowdown as a result of the increase in the supply of rooms. The growth in supply has been picking up speed as operating fundamentals have consistently improved, but it’s no surprise that fundamentals would be soon pressured. Plus, interest rate survey data from Trepp.

  • Growth Predicted for Commercial Mortgage Lending in 2017

    February 27, 2017

    Last year, $502 billion in U.S. commercial mortgages was originated. That was down slightly from the $504 billion originated the year prior and well shy of the $537 billion that the Mortgage Bankers Association (MBA) had predicted. The MBA is forecasting $515 billion of lending activity for 2017, which would top the origination record of $508 billion set in 2007. Plus, interest rate survey data from Trepp.

  • Performance of Retail REITs Mixed as Consumer Preferences Shift

    February 21, 2017

    According to NAREIT, regional mall REITs posted total yearly returns of –5.2 percent last year. However, the broader retail REIT sector brought in a 0.95 percent total return for 2016, and 0.5 percent for 2017 year-to-date. Within the sector, freestanding retail REITs significantly outperformed mall REITs and shopping centers last year overall. Plus, interest rate survey data from Trepp.

  • Modest Gains for REITs in January

    February 6, 2017

    According to the National Association of Real Estate Investment Trusts (NAREIT), the FTSE/NAREIT All REIT Index posted a return of 0.2 percent last month, compared to the Standard & Poor’s 500 index return of 1.9 percent. As for REIT property sectors, timber REITs posted a total return of 3.7 percent, while industrial REITs dropped by 6.5 percent. Plus, interest rate survey data from Trepp.

  • Netflix and Total Returns: Data Center REITs Benefit from Media Consumption

    January 30, 2017

    Data center real estate investment trusts (REITs) have been the best-performing sector over the past two years, posting total returns of 28.36 percent in 2015 and 26.41 percent in 2016. Once considered a fringe sector, data centers have charged onto the center stage as internet use and data consumption have skyrocketed. But data centers are also proving to be one of the sectors most sensitive to interest rates: returns stumbled late in 2016 before making a recovery in December. Plus, interest rate survey data from Trepp.

  • Can Hotel REITs Capitalize on a Banner 2016?

    January 23, 2017

    Capitalizing on a strong fourth quarter, hotel real estate investment trusts posted a healthy 25 percent total return for the year. However, hotel consulting firm STR is expecting 2.8 percent RevPAR growth this year, which would be the lowest since 2009. Plus, interest rate survey data from Trepp.

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