The REIT market can serve as a canary in the coal mine to predict when the private real estate market may be about out of oxygen. A report by Scott Crowe, president and chief investment strategist, and Uma Moriarity, senior investment strategy analyst and global ESG lead, both of CenterSquare, which was published in the November issue of Institutional Real Estate Americas, examines what the current volatility in the REIT market indicates about the private real estate market. “During these periods when the state of the capital markets is in flux and private markets are slow to adjust, we look to the public markets to directionally indicate the path for pricing. Accordingly today, public markets are pointing to cap-rate expansion in the private markets, where the movement will be most acute for deals that were underwritten assuming low debt costs and aggressive persistent growth. Investors who track REIT market movement should recognize this pattern and focus pri
