REITWorld 2014: Capital Flows into REIT Sector Remain Robust, Panelists Says

Capital flows into the REIT sector from domestic and international investors remain robust, according to a panel of industry figures at REITWorld 2014: NAREIT’s Annual Convention for All Things REIT.

The panelists also said the limited supply of real estate assets is pushing valuations higher.

“Capital is chasing a relatively few number of assets,” said Louis Taylor, senior vice president at Paulson & Co., Inc. “Prices are fair to pretty full.”

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Sector Focus: Industrial REITs Benefitting from Robust Demand, Limited Supply

Robust demand for space, fueled by improving economic fundamentals and limited supply, is expected to bolster the industrial REIT sector for the rest of 2014, according to analysts.

So far in 2014, the sector has continued to outperform the broader REIT market. Total returns for industrial REITs gained 7.4 percent last year, compared with a 2.9 percent gain for all equity REITs. As of March 24, total returns for industrial REITs were up 9.4 percent for the year, versus a 6.8 percent gain for all equity REITs.

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