REIT’s attracting capital – CRE is next!!!

The economy is improving … I swear!

This article from CoStar shows the initial signs of a thawing in the Commercial Real Estate market.

Wechsler noted that the ability of REITs to raise billions in this market is an encouraging sign to investors “because there is less concern about their ability to refinance in 2010, 2011 and 2012.”

REITs account for about 10% of the $6 trillion commercial real estate market, Wechsler said, adding that that 10% has found its bottom and historically the public real estate market leads the private real estate market by four to six quarters.

Some REIT analyst this past week have also called the REIT bottom.

“We recently upgraded the REIT sector to outperform in the belief that thawing capital markets and a bottoming economy has made the risk/reward profile of REITs attractive,” BMO Capital Markets analyst Paul Adornato wrote in a note. “We are taking advantage of market dips to upgrade those REITs we believe have the potential for multiple expansion as liquidity fears begin to fade.”

See full article


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