REITS delivering high returns, Green Street Advisors’ CEO says

Real estate investment trusts have been delivering high returns in the
last few years, but they are recovering from a previous 75 percent
drop two and a half years ago, Mike Kirby, the founder and chairman of
Green Street Advisors, told the New York Times. “REITS delivered total
returns of 27 percent two years ago and 20 percent last year,” he
said, “and this year they’re up something like 10 percent year to
date.” The property sector for apartments is “on fire” right now, both
in New York and nationwide. Demand for apartments grew during the
recession because of the decline in homeownership, and the demand
continues because there is very little construction in the last few
years. New York in particular has been doing well, he said, since
there are fewer layoffs than expected and demand as well as rents are
increasing. In early- to mid-2009, Manhattan office values were down
over 50 percent, he said, and since then they’ve rallied up to 78
percent, bringing rates to 15 to 20 percent lower than the 2007 peak.
[NYT]