While we think that US REITs have further to fall over the rest of this year, we doubt that they will fare nearly as badly as they did during the Global Financial Crisis (GFC), nor underperform ordinary US equities significantly, like they also did back then. One key difference between then and now is that the latest boom in commercial property markets has been much less reliant on debt, meaning that it has not involved anything like the same build-up of leverage as in the mid-2000s.
Note: We’ll be discussing the US August employment report in an online Drop-In session on Friday, 2nd September. Register now.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services