REITs could perform well as economy improves
Dave Twardock, president of Prudential Mortgage Capital, says the REIT market rally that started in the first quarter of 2010 may have legs. "Provided the economy, jobs growth and the overall market continues to move forward, REITs stand to perform pretty well," he says. "The one caveat I would have is interest rates, as REITs are sensitive to interest rates. So we need to watch carefully what happens with the rate environment."Twardock notes that hotels, followed closely by apartments, industrial and retail properties may lead the recovery in the commercial real estate sector in the coming year. "I think offices will lag a little in terms of the fundamentals coming back," he says.
Interested in hearing more of what Dave has to say? Watch a portion of his recent interview with REIT.com. Want to talk to Dave? Email Lisa Iurato.
