Commercial real estate (CRE) has weathered the past few years of recession well, particularly real estate investment trusts (REITs). The relative safety of REIT companies has caused investor to flock to them even with a momentary dip in investor confidence.
The REIT industry has become a necessary component of a well-diversified portfolio. The industry currently had an equity market capitalization of about $800 billion and controls assets worth more than $1.5 trillion, according to the NAREIT. The REIT now form the ninth-largest industry group in the Standard & Poor’s system, and a core group of 18 REITs are celebrating their 20th anniversary of being listed on the NYSE.
Public RETI companies are now behind some of the biggest transactions taking place and have become formidable players on the acquisitions market. Even the industry as a whole is becoming broader and more diversified, with both traded and non-traded REITs.
Real Estate Forum recently brought together the heads of well-known public CRE companies in an effort to take a look into the business of running a REIT. The individuals discussed the changes in the REIT market, their strategies, and their prospects for the CRE market as a whole.