The 50-basis point decrease in interest rates by the Federal Reserve should provide a short-term catalyst for REIT shares to move higher and commercial real estate activity to resume.

The rate decrease makes the dividend paying shares of REITs more attractive for the time being.

The risk is that it will take some time for the short-term rates to affect long-term rates, and the risk remains that during this time we could see a further slowdown in the economy, more troubled housing numbers, and a reverse in commercial real estate leasing activity.

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