Timothy Soulas

REITs Posted Their Strongest Returns of the Year in May The FTSE Nareit All Equity REITs Index posted a total return of 5.3% in May, marking the strongest monthly performance of 2024 and outperforming broader equity markets. The Russell 1000 and Dow Jones U.S. Total Stock Market both rose 4.7%. Through June 12, the All Equity REITs rose 0.5%, while the Russell 1000 was up 2.6% and the Dow Jones U.S. Total Stock Market was up 2.5%. Inflationary measures remain higher than the Federal Reserve’s target, leading most investors to expect that if there are rate cuts this year, they will occur toward the end of the year. As of May 31, the dividend yield on the FTSE Nareit All Equity REITs index was 4.19% and the FTSE Nareit Mortgage REITs Index yielded 12.48%, compared to 1.32% for the S&P 500. The yield on the 10-Year Treasury fell 19 basis points to end the month at 4.49%. https://lnkd.in/gZ2SM59Z

3

Three Takeaways from the Brooklyn Industrial Market in Q1 1. Dollar Volume Rebound Q1 recorded $190M in total dollar volume, marking a 56% increase from Q123, and a 15% increase from Q122. This metric serves as a barometer of institutional confidence in NYC and the economy. While uncertainties in the economy persist, stable interest rates over the past 7 months have allowed investors to be more confident in their underwriting, facilitating larger transactions. 2. User is King Last year, 84% of the transactions were acquired by users. In Q1 this trend continued with 69% of all transactions being bought by users. For sellers navigating today’s market, cooperation with brokers, exposure, and excellent marketing materials are paramount! 3. The Buyer Pool Under $5M is Insatiable Deals under $5M saw a record sales price per SF of $521 in Q1. Service-based businesses are willing to pay substantial premiums for vacant warehouses, driving prices higher in this segment. While the premium persists above $5M, it is not as strong as the sub-$5M market.

25

3 Comments

Appraisers in the U.S. need better tools that allow them to use more judgement in valuing assets. My colleague Willem Vlaming has been developing work showing that in parts of the world with low market liquidity and few comparable sales, that appraisal teams have been better able to capture the decline in asset values. http://ms.spr.ly/6040Yw5ts MSCI Real Assets #CRE

62

"HKS Principal, Peter Carillo, discusses how capital markets are shaping NYC in a recent interview with Commercial Property Executive. Read the full article at the link below:

3

🌆🏙️🌇The New York City real estate market saw both the number of sales and median prices rise year-over-year, our report ranking the Top 50 Most Expensive NYC Neighborhoods shows. Meanwhile, Manhattan was the only NYC borough where home prices trended down, dropping below the $1 million mark for the first time since Q2 2020. In fact, of the 21 Manhattan neighborhoods in our Q1 top, only 7 experienced price increases. Meanwhile, some neighborhoods, such as the Theatre District - Times Square area, underwent price contractions as sharp as 35% Y-o-Y. Check the full story below: https://ow.ly/4COB50RoWT8

6

Interesting perspective on AI's impact on data centers and the economy overall. Definitely more to come on this topic given we are only in the early innings of how AI will shape data center development and site selection. https://

22