After Two-Year Slide, REITs Showing Signs of Recovering
Optimists, though, think most of the bad news is already priced in to the market, making solid REITs and real estate as a whole a bargain.
"What you would call opportunistic buyers are considerably more active than even just two months ago," says Ross Moore, executive vice president of market and economic research at Colliers International, a Boston-based real estate investor. "There's a perception that we may have hit bottom and now is the time to start looking."
Despite what he calls "a tough slog ahead" Moore also sees REITs, particularly those that focus on industrial properties, as solid value over the long term.
"It's what's baked into the price that really matters. Obviously real estate is a tough sell bearing in mind what's going on in the residential world," he says. "The flip side is a lot of the bad news is known so prices have come off. If you're getting into REITs now, over the next five years you're probably going to do very well."