Author Topic: Current Private Market Real Estate Values Versus REITs  (Read 546 times)

CorpRaider

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Current Private Market Real Estate Values Versus REITs
« on: March 25, 2018, 08:20:34 AM »
Hi all,

A commercial real estate investor on another message board that I frequent recently posted that he's seeing properties on offer at prices yielding cap rates that are materially lower than what one can get in the public equity real estate investment trust market at the moment.  I have also seen some research from Green Street indicating the same.  This prompted me to take a quick look at retail focused REITs as one of the more bombed out sectors.

I thought I would post here and ask if you all are seeing the same thing (i.e. private cap rates that are lower than the implied ones and even the dividend yield one can get with REITs in the same sectors)? 

CRE info would be appreciated but I'm also interested in what you're seeing in residential market.  Can you get a better equivalent yield on EQR, SFR, Aimco, etc...than the private market offers you are seeing?

Thanks!
« Last Edit: March 26, 2018, 09:03:34 AM by CorpRaider »

CorpRaider

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Re: Current Private Market Real Estate Values Versus REITs
« Reply #1 on: March 28, 2018, 12:14:43 PM »
I guess no one has talked a broker shopping a property at like a 4-6% cap rate and said "why would I buy that at this price when I can buy x REIT or even VNQ and get a 5% cash yield?"