Real Estate Fundamentals in “Great Shape,” Says Analyst

Chris Lucas, a REIT analyst and senior managing director at Capital One, joined REIT.com for a video interview at REITWorld 2015: NAREIT’s Annual Convention for All Things REIT at the Wynn Las Vegas.

Real estate fundamentals are in “great shape,” according to Lucas: New development is under control, and demand remains fairly consistent across all the property types.

“We’re optimistic about where things are. Obviously there are selected markets where there may be some imbalances, but the bottom line is that things are pretty good,” Lucas said.

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First Industrial CEO Encouraged by Fundamentals

Bruce Duncan, president and CEO of First Industrial Realty Trust, Inc. (NYSE: FR), joined REIT.com for a CEO Spotlight video interview at REITWorld 2015: NAREIT’s Annual Convention for All Things REIT at the Wynn Las Vegas.

First Industrial owns industrial real estate in major markets across the United States.

Duncan said he is “very encouraged” by industry fundamentals heading into 2016. During the third quarter, First Industrial’s occupancy rate increased to 95.5 percent from 95.1 percent, he said.

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COPT CEO Sees Strong Fundamentals in Core Office Markets

Roger Waesche, Jr., president and CEO of Corporate Office Properties Trust (NYSE: OFC), joined REIT.com for a CEO Spotlight video interview at REITWorld 2015: NAREIT’s Annual Convention for All Things REIT at the Wynn Las Vegas.

COPT primarily focuses on U.S. government tenants in the defense and information technology sectors. Waesche commented that pricing remains very strong for office product in the firm’s core markets as a result of solid fundamentals and strength in the capital markets.

Roger Waesche

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Fundamentally Speaking: Economic Fundamentals Sound Despite Market Moves

In the latest edition of Fundamentally Speaking, Calvin Schnure, NAREIT’s senior vice president for research and economic analysis, explained that underlying  fundamentals of the broader economy remain positive, despite market gyrations.

Schnure noted that growth in gross domestic product (GDP) made a robust improvement in the spring. At the same time, sustained consumer spending, particularly for auto sales, has been evident.  “In sum, the underlying economy looks quite good,” Schnure said.

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REITs Up 5 Percent in July; Earnings Underscore Healthy Fundamentals

REITs turned higher in July as solid second quarter earnings reports reaffirmed that fundamentals in the sector remain healthy, analysts said.

The total returns of the FTSE/NAREIT All REIT Index gained 4.9 percent in July, while the S&P 500 Index rose 2.1 percent. The yield on the 10-year Treasury note dropped 0.1 percent for the month.

Through July 31, total returns from the FTSE/NAREIT All REIT Index for 2015 slipped 0.6 percent, while the S&P 500 Index was 3.4 percent higher in the same period.

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