REITerating Our Overweight Stance

Global real estate will continue to fare well, given the favorable backdrop of accommodative monetary policy, improving economic drivers and restrained supply. Commercial real estate (CRE) and REIT investors have been major positive benefactors of central bank policy. In the years leading to the Great Recession, monetary policy was lax and accommodative, leading to unrestrained appetite for real estate. Financial exuberance ensued. Because central banks introduced even more accommodative and experimental policies after the financial crisis, CRE prices have now soared far above their previous highs. Abundant liquidity and the lack of alternatives support these prices. But CRE investors have other reasons to be optimistic: solid fundamentals, improving economic drivers, and steady income streams. Indeed, CRE assets are in a “goldilocks” scenario: Growth is sufficient to generate sustainable tenant demand without triggering a new supply cycle, while uncertainty is still a concern, which maintains demand for trophy markets. Preferred markets include Japan, the Eurozone and Australia.

For additional details, please access the report “Global REITs: True Love Or Stockholm Syndrome?” at

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