Publicly-traded REITs have enjoyed a robust recovery since the last recession. It’s a far cry from the days of plummeting stock prices, middling total returns and balance sheet woes.
However, there are increasing signs that the current cycle has begun to run its course. Sentiment is pointing to commercial real estate having reached a peak. And recent property price indexes give further fuel to that argument, flat-lining or beginning to recede in recent months.
The NREI research report on REITs was completed via online surveys distributed to readers of National Real Estate Investor in May. The survey yielded 350 responses. Recipients were asked what regions they operated in (and were allowed to select multiple regions). Overall, 49 percent said they operated in the East, followed by the South (48 percent), West (45 percent) and Midwest (43 percent). Half of respondents (51 percent) hold the titles of owner, partner, president, chairman, CEO or CFO. Approximately half of respondents are investors or developers.