REITs experience slow third quarter, strong YTD

Multifamily REITs have improved during the first nine months of the year.

The National Association of Real Estate Investment Trusts released a report that showed while multifamily REITs had a slow third quarter, it was still better than other market aspects during the first nine months of this year. This could suggest that commercial property managers are experiencing an improved market.

While the market dealt with an influx of tenants due to the housing market's collapse, the level hasn't subsided, Calvin Schnure, vice president of research and industry information, told Multi-Housing News. There are more potential renters who are either waiting for an opportunity, or they have moved into already-occupied apartments to room with others.

"The sector has a lot of people who are on the sidelines waiting for the job market to improve, for them to go out and sign the lease," Schnure told the news source. "We had very sluggish job market gains – this isn't a surprise to anyone. The U.S. economic recovery is part of the global recovery that has been struggling."

Schnure added that despite the housing market's improvements, there will still be a high demand for rental units, which will help increase development.

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