Mar 10, 2010 12:20 PM, By Denise Kalette, NREI senior associate editor
Despite poor commercial real estate fundamentals, retail and apartment real estate investment trusts (REITs) are enjoying a powerful resurgence. For the 12-month period ending February 28, a key equity REIT index soared 95.19%, outdoing both the Nasdaq and Standard & Poor’s 500 index of stocks, according to a new report.
For the month of February, U.S. REITs gained more than 5%, according to the report by the National Association of Real Estate Investment Trusts (NAREIT), a trade group based in Washington, D.C. The gains were driven by investment in the retail and apartment sectors, according to the report.
“This has been a period of tremendous growth for REIT shares,” says Ron Kuykendall, vice president at NAREIT. “What it means, I believe, is that investors are betting on a recovery.”
The performance represents a remarkable contrast to the period from the market peak in early 2007 to the trough in March 2009, the lowest point for REITs. Share prices fell a devastating 75% during that period, says Kuykendall.
If investors indeed are betting on recovery, that could provide a shot in the arm to the commercial real estate industry across the U.S. Although REITs comprise just 10% to 15% of the total U.S. commercial real estate marketplace, they represent many of the largest companies and property owners across all property types — retail, multifamily, office, industrial and hotel.
Dealmakers get busy
A developing trend that factors into the recent investment in shares is that acquisitions are once again beginning to take place after the nation’s deep recession and credit shortage, particularly in the... Read More Here
About Me
- Chris Stuard - Sperry Van Ness/Martin Commercial Group
- Chris serves as an Investment Advisor specializing is apartment and retail investments with Sperry Van Ness/Martin Commercial Group. As an member of the NAIFA, he was the NAIFA Greater Evansville Chapter President in 2004 and 2005. Chris retains the NAIFA’s senior designation, the IFAS. Chris holds a real estate license in the State of Indiana and Kentucky and is a member of the Indiana Commercial Board of Realtors. He is also a member of the National Association of REALTORS, Indiana Association of REALTORS, is an Indiana Certified General Appraiser, holds a HERS certification, is a certified Level I and Level II Indiana Assessor/Appraiser and is a certified Indiana Tax Representative.