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November 2017   Volume 43, Number 11      
 

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REIT Investors Look to Alternative Property Sectors for Bigger Returns

Retail REITs are experiencing weaker performance as a result of a more negative perception of the space.

“We are clearly over-retailed in the U.S. and the growth in e-commerce is really not helping brick-and-mortar stores,” says Joi Mar, an analyst at research firm Green Street Advisors.

According to the latest Green Street Commercial Property Price Index for August, the industrial sector has seen the largest increase in values in the past year at 10 percent, while malls, strip retail centers, and self-storage facilities all experienced drops in values. The overall picture points to slower growth for REITs, with the FTSE NAREIT All

The overall picture points to slower growth for REITs, with the FTSE NAREIT All REIT Index, lagging the S&P and Dow Jones Industrials by nearly 4 percent having averaged 8.0 percent total year-to-date returns as of September 8, 2017.

While investors are not abandoning REITs, they are becoming more selective, says Haendel St. Juste, senior REIT analyst at Mizuho Securities USA. Concerns are emerging about late-cycle decelerating growth and more issues are popping up in specific real estate sectors. The good news is interest rates have remained low and REITs are generally viewed as a safe harbor for investors in volatile economic and political times, which could help to boost the sector, adds St. Juste.

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In this issue:

The 5 Hottest Hipster Real Estate Markets Across America

Could DACA Repeal Impact Real Estate?

Houston Rethinks Real Estate Development After Harvey

Hurricane Irma Not Likely to Affect Florida Real Estate Prices

NAR Forced MLS Membership Up for Review

REIT Investors Look to Alternative Property Sectors for Bigger Returns

Berkshire’s HomeServices of America Acquires Long & Foster

Harvey Victims Facing Temporary Housing Shortage in Houston

Malls Need New Business Model Says CBRE Report

The End of Facebook for Real Estate?

 


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