Commercial Real Estate is once again outperforming the broader US Stock Market. The interest rates hovering almost close to zero is the real driver of REIT today. As long as interest rates stay low, REIT demand will rise. Stock exchange-listed U.S. equity real estate investment trusts were up 16.25 percent, with a dividend yield of 3.52 percent, in the first half of 2014, according to the National Association of Real Estate Investment Trusts. These results compare to the S&P 500 index first-half 2014 total return of 7.14 percent and a dividend yield of 2 percent.
“The outperformance compared to the S&P 500 index came from REIT sectors representing a broad range of U.S. economic activity, and was supported by good supply and demand balance in commercial real estate markets around the country,” said NAREIT President and CEO Steven A. Wechsler.