US REITs, REOCs Prepared for Uncertainty Ahead
January 4, 2016 | by Philip Kibel | Commercial Property Executive
As Moody’s looks ahead to 2017, we expect that performance of US REITs and REOCs will remain stable. Real estate fundamentals continue to be healthy, except for suburban office, which continues to face high vacancies, rent roll-downs and negative net operating income (NOI) growth. Most investment grade-rated REITs have solid core earnings growth. Supply and demand dynamics are stable across most sub-markets.
Despite their stability, key credit issues to watch for in 2017 include liquidity and interest rates, development and adapting to new technologies.
The Blue Vault Summit could not have been more perfectly timed. This gathering of the Broker Dealer and Sponsor communities provided insightful and open discussion from several vantage points. These conversations are paramount, especially in a time of significant regulatory change.