Nearly every corner of the market has been affected by the Fed’s path to higher interest rates. However, some have been hurt more than others. The commercial real estate sector and real estate investment trusts (REITs) that own office buildings, apartments and property types fall into this camp. The pain has been widespread across all matters of REITs as a triple whammy of issues has hurt the sector.
But things may finally be changing.
REITs have started to finally outperform the broader market. With the pending rate cut this week and further rates coming down the pike, the sector is once again poised for a major turnaround. For investors, the time to buy the REITs could be now.