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S&P 500 real estate stocks haven’t been this high in a long time

Warehouse companies like Prologis and Duke Realty are doing particularly well

(Credit: iStock)
(Credit: iStock)

Real estate stocks are having a very good year.

As of Monday, a quarter of the 32 companies in the real estate sector on the S&P 500 were trading at their highest levels in at least the past year, according to the Wall Street Journal. The sector is the second-best performer for the year, behind only technology stocks.

Investors are particularly keen on companies betting big on e-commerce. Prologis and Duke Realty, both of which focus on warehouse space vital to companies like Amazon, are trading at their highest levels in years.

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The importance of this space was highlighted last month when Blackstone Group landed a massive deal to spend $18.7 billion on a network of warehouses throughout the country.

The big draw overall is still real estate firms’ ability to make steady payments in a low-rate environment.

[WSJ] – Eddie Small