VanEck Office and Commercial REIT ETF

The worst may be over for commercial real estate (CRE) assets, yet a full recovery is still some distance away, according to a recent report from Goldman Sachs. The analysis, shared by analyst Caitlin Burrows on Friday, indicates that while the annual decline in CRE transaction volumes has likely bottomed out, significant challenges remain for a meaningful country-wide rebound, though some cities are exceptions. CRE Market Has Bottomed, According To Goldman Sachs’s Burrows Goldman Sachs notes that leading indicators suggest the CRE market has seen the worst of its downturn. Drawing comparisons to the Global Financial Crisis (GFC), Burrows explained that it took eight quarters of year-over-year declines in transaction volumes before the market saw a positive shift in the ninth quarter. Currently, the CRE market has experienced eight quarters of declines, starting from the third quarter of 2022. There have been some optimistic signs from leading indicators. Goldman Sachs highlighted that the OECD's U.S. Composite Business Confidence Index, which leads U.S. office leasing volumes by ...Full story available on Benzinga.com

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The Federal Reserve’s indication of upcoming interest rate cuts injected optimism into the real estate sector, particularly benefiting stocks under pressure due to exposure to the office industry or elevated debt levels. A Shift Towards Speculation Thursday’s session suggests the rally has been more pronounced among real estate companies with higher debt levels This shift may signify a growing investor inclination towards speculative stocks within the real estate sector, banking on the premise that forthcoming rate cuts could provide a much-needed respite for real estate investment trusts (REITs) grappling with significant debt burdens. The Fed’s March dot plot hints at three rate cuts in 2024, with a further three anticipated the following year. This strategic direction is coupled with an upgraded growth ...Full story available on Benzinga.com

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