CA - Bad News For REITs: 8 Troubling Takeaways For Real Estate

2024-03-21 07:30:00 ET

Summary

• Some property sectors are in trouble due to oversupply, which is causing rents and property values to decline.
• Moreover, capital remains expensive and a wave of debt maturities is looming.
• Here's what this means for REITs and other commercial real estate stocks.

It's no secret that I'm very bullish on REITs and other commercial real estate stocks. I regularly write articles on my favorite REIT investment opportunities and some of you would probably describe me as a "REIT cheerleader."

But I am still objective enough to recognize that it's not all sunshine and rainbows in the REIT world.

On the contrary, many sub-sectors of the commercial real estate/CRE market are today facing significant challenges, and this could lead some REITs to underperform going forward....

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