GlobeSt.com Poll Predicts Rocky Times for REITs

WASHINGTON, DC—It appears that respondents to a GlobeSt.com poll on future REIT values have not been drinking the Kool-aid, err, I mean listening to conventional wisdom about the REIT industry and how they are not as interest rate sensitive as widely assumed.

When we asked why REITs were doing so well this year, despite the probability that the Federal Reserve Bank would raise rates, the majority, or 52% answered that their current excellent run is only temporary. Right now, this group agreed, rates are still relatively low and the Fed is only slowly raising them. “But once they reach a certain level, investors will dump their REIT stocks as expected.”