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Real Estate - SEPTEMBER 6, 2022

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U.S. REITs decline 6 percent in August

by Loretta Clodfelter

REITs fell nearly 6 percent in August, according to the FTSE Nareit Equity REITs index, led by declines in the office and apartment sectors. The drop was part of a broader market movement, as the S&P 500 Index declined 4.2 percent in August, the Dow Jones Industrial Average fell nearly 4.1 percent and the Nasdaq Composite Index dropped 4.6 percent.

The only REIT sector to post a positive return in August was self-storage, which advanced nearly 1.7 percent. The recession-resistant self-storage sector has faced strong demand, which is expected to continue in second half 2022.

Office REITs fell more than 10.9 percent in August, and year-to-date the segment is down nearly 30.5 percent. Continued concerns about the future of the office post-pandemic and the impact of remote work hav

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