Despite generally moderate performance by REITs this year, certain categories have posted breakout results. Industrial REITs are up about 24.7% this year and infrastructure REITs have a total return of 38.4%.
Vanguard shareholders have voted to change the benchmark index for the Vanguard REIT Index Fund and Vanguard Variable Insurance Fund-REIT Index Portfolio to allow for a broader exposure to real estate. The MSCI US Investable Market Real Estate 25/50 Index -- which includes property management and development companies -- will be the new index.
Workspace Property Trust announced it is delaying its initial public offering due to current market conditions. The company had hoped to raise between $527 million and $585 million in the listing.
Invitation Homes and Starwood Waypoint Homes have completed their previously announced merger, creating the largest owner and operator of single-family rental homes and hitting a high-water mark in the industry's consolidation. The combined company's name is Invitation Homes, and it continues to trade on the New York Stock Exchange.
Manhattan's Upper Fifth Avenue, Hong Kong's Causeway Bay and London's New Bond Street command the highest retail rents in the world, according to Cushman & Wakefield. It also reported that global retail rent growth had risen 0.5% by the second quarter of 2017.
Apartment REITs including UDR, AvalonBay Communities and Preferred Apartment Communities plan to scale back their construction pipelines in expectation of 2018's projected peak in multifamily deliveries. The 2018 Dodge Construction Outlook forecasts that apartment starts will drop by 11% next year.
The retail industry is seeing a dramatic change both in physical stores and consumer expectations, but rather than label it an "apocalypse," it's more of a "correction" because retailers have changed their approach, Dan Blacharski writes. "The stores that are opening are creating differentiation, assortment and a new marketing, pricing and promotion perspective," said Ric Noreen of Waypoint Strategic Solutions.
The 115,767-square-foot Winter Springs Town Center in Florida was acquired by Phillips Edison, which has been growing its collection of grocery-anchored retail centers. The property features a Publix with a mixture of tenants, including Subway, Edward Jones and UPS.
Market Basket, a discount grocer, will anchor an 80,000-square-foot space in a planned retail plaza in Westbrook, Maine. The 500,000-square-foot property was earmarked for a Walmart Supercenter, but the retailer pulled out.