According to the Washington, D.C.–based National Association of Real Estate Investment Trusts (NAREIT), the FTSE NAREIT All REITs Index was up by 0.6 percent in August, with infrastructure and data center REITs making the most significant gains. Plus, rate survey data from Trepp.
Millennials are thought to be the driving force behind this migration as companies continue to find top talent in larger, urban environments. But the suburban office market may be showing signs of renewed strength and growth potential.
As job growth in the professional services sector has increased substantially over the past several years, office real estate investment trusts (REITs) have benefited from strong leasing fundamentals. However, more office construction and oversupply concentrated in major metro areas such as New York City, Houston, and Washington, D.C., continue to concern those in the market. Plus, interest rate survey data from Trepp.
As job growth in the professional services sector has increased substantially over the past several years, office real estate investment trusts (REITs) have benefited from strong leasing fundamentals. However, more office construction and oversupply concentrated in major metro areas such as New York City, Houston, and Washington, D.C., continue to concern those in the market. Plus, interest rate survey data from Trepp.
Uncertainty in the health care REIT space had spiked since the U.S. elections due to the political debate over the Affordable Care Act. But health care REITs gained 3.5 percent in the week after House Republicans pulled their health care reform bill. Plus, interest rate survey data from Trepp.
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.
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.
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.
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.
October share prices for REITS were lower month-over-month, and all sectors posted lower returns, except for infrastructure REITs which reported 18.3 percent in total returns for the year. Despite the decline in prices and performance, sector returns continue to surpass the S&P 500. Plus, interest rate survey data from Trepp.
