Slow recovery has helped landlords

03/28/2014 | Morningstar

The U.S. economy's slow pace of recovery has been a boon for commercial landlords, according to Morningstar senior analyst Todd Lukasik, because it has generated an incremental increase in demand without driving up supply. "As such, existing landlords should continue experiencing improved occupancy rates, greater bargaining power relative to tenants, and nice increases in same-store net operating income," he writes. However, the potential for higher interest rates remains a risk for REITs.

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