Two major risks in commercial real estate are inflated property prices and a speculative construction pipeline that may be too robust for actual demand, writes Calvin Schnure, Nareit's senior vice president of research and economic analysis. Currently, he notes, price gains are bolstered by net operating income growth, and the major property types are balanced between supply and demand in their pipelines, which strengthens forecasts for REITs.
Supported price gains, balanced pipelines bode well for REITs
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