REIT demand is being bolstered by the generally strong macro-economy in the U.S. and REITs are benefiting more than the S&P because REITs are more domestic and therefore not being dragged down by the weakness abroad. This creates an excellent backdrop for rent growth, but we must be cautious in our selection as there are other factors beyond demand. Specifically, I believe this low interest rate, easy money era is significantly altering supply patterns in real estate.
Too low for too long
Early in the low interest rate environment things are great. Most entities have