Millennials and seniors are seen as key drivers for the REIT market.
CHICAGO—Despite some uncertainty about US Federal Reserve plans for interest rates in December and a slight slowdown in new and existing home sales, the real estate market, and especially REITs products, continues to grow in both assets and performance. That is according to a recent article from GlobeSt.com sister publication, ALM's Think Advisor.
The article states that during the 11th BMO Capital Markets Annual Real Estate Conference in Chicago in September, several prognosticators gave upbeat assessments about the market. One BMO analyst noted that “REITS do best during Goldilocks markets,” and another said that with public REITs accounting for only 10%-15% of the market, the switch from private to public investments could also mean big growth.
The numbers seem to bear out these predictions. A Citi Research report stated that $22.5 billion in new flows entered the REITs market this year, largely due to the low interest rate environment. Negative global interest rates are also pushing the trend. Close to $18 billion of REIT inflows came from Japanese investors looking for greater returns.
As of mid-September, the best performing REITs sectors for the year were data centers (+29%), Net Lease (+26.8%) and Industrial (+25.5%), according to the BMO Real Estate Weekly and Preferred report from mid September. These vary from 2015, when storage, manufactured homes and apartments were best performers. Both apartments and storage have negative returns this year.
Click here to read the full article at ThinkAdvisor.com
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
