Interest in commercial REIT sector picks up

Although commercial real estate loan delinquencies are still rising and property values are falling, interest in the commercial REIT sector skyrocketed last week, with three new IPOs in the REIT sector alone. Apollo Commercial Real Estate Finance plans to invest in commercial real estate securities and corporate debt; Foursquare Capital plans to invest in commercial and residential mortgage backed securities, mortgage loans and asset-backed securities; and Colony Financial plans to invest in commercial mortgages and real estate debt. In the past six months, the Dow Jones REIT index has gone up 84 percent and 60 different REITs have raised nearly $60 billion in new equity.