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Vacancy Rates and Real Estate Investment Trusts

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Page 1: Vacancy Rates and Real Estate Investment Trusts
Page 2: Vacancy Rates and Real Estate Investment Trusts

For 20 years, Steadfast REIT has helped investors understand and navigate the world of real estate investing and real estate investment trusts. Applying an in-depth knowledge of the rental market and its changing trends, Steadfast REIT supports clients in choosing the trust best suited to their needs.

Page 3: Vacancy Rates and Real Estate Investment Trusts

An increasingly popular portfolio option, the real estate investment trust (REIT) enables investors to hedge against inflation and rising interest rates. Unlike bonds, a REIT allows the investor to maintain his or her purchasing power even as the economy improves and interest rates rise. A growing economy can be particularly beneficial to REIT investors when job creation corresponds to the growth of companies and office rentals, which frequently stream revenue into REITs.

Page 4: Vacancy Rates and Real Estate Investment Trusts

As of summer 2013, forecasters were seeing rent increases and lower vacancy rates in commercial real estate. The National Association of Realtors measured a 0.2 percent decline in office sector vacancies, while the retail and industrial sectors saw a 0.6 percent decrease. Some experts have seen a correlation between these trends and a lower vacancy rate in multifamily residential properties, many of which have responded to demand with higher rental rates. If these trends continue, REIT dividends may increase for certain investors.