The REIT market returned +1.3% in Q2 of this year, illustrating the fact that there is always opportunity in the REIT market, regardless of what is happening in the underlying commercial property market. As growth slows, there are REITs that will benefit from lower rates, and if growth re-accelerates there are REITs that can insulate a portfolio from higher rates. The point is that opportunity is always present, as publicly traded REIT investors are not forced to buy and hold within any specific property type.
Source: MarketScreener | Repost Serenity Alts. 12/11/2019
Commercial-property prices in major cities around the world tumbled in the second quarter, amid signs of slower global growth and heightened trade tension between China and the U.S.
Average property prices fell in the second quarter from the first quarter in Hong Kong and Seoul to London and Washington, D.C., according to data from Real Capital Analytics.
Paris commercial real-estate prices declined the most among the markets that Real Capital Analytics tracks in Europe, tumbling 2.6% for the quarter. Prices in Central Chicago fell 2.1%, making it the worst performer among U.S. cities.
In Australia, where the economic growth has slowed sharply since mid-2018, property prices were down more than 2% in Melbourne and Central Sydney.
“Investors are less hungry to take on risks in major markets,” said Jim Costello, senior vice president at Real Capital Analytics.