The industrial economy tends to follow the overall economy, which is good news for such REITs as STAG Industrial, says CEO and president Ben Butcher. "We grew about 70 percent last year on a square-footage basis and we expect to grow at least 25 percent this year," he said.
Some analysts are making the case that REIT stockholders overreacted to the news that interest rates would rise. They note that since June 24, REITs outperformed the broader market. These analysts are projecting an 11% to 15% REIT return rate for 2013.
The national vacancy rate for retail centers dropped to 10.5% in Q2 from 10.6% the previous quarter, according to Reis. This is the sixth time in the past seven quarters that the retail vacancy rate has edged down. Asking and effective rates both rose by 0.3%.
The Financial Accounting Standards Board and the International Accounting Standards Board are still accepting comment letters on a proposed lease-accounting standard. In addition, they have scheduled five public meetings in the fall to discuss the proposal.