The drumbeat calling for the fall of office real estate has been steady and unrelenting since REITs peaked on December 31, 2021.  As we reported in our May 2023 Chilton REIT Outlook titled, “Office REITs: Where is the Bottom?” most people are not surprised to hear that office REITs (as measured by the Bloomberg REIT […]

Since the last Chilton REIT Outlook covering the self-storage sector was released in October 2020, “Essential REIT Evaluation: Self Storage”, the sector has grasped the attention of investors due to the unprecedented levels of demand and considerable outperformance through the pandemic.  The sector has also been grabbing headlines recently due to the Extra Space (NYSE: […]

The Chilton REIT Team recently embarked on a three-day journey to New York City, braving the haze of Canadian wildfire smoke that engulfed the air in early June.  This expedition was fueled by a multitude of management meetings and property tours, all in conjunction with the highly significant REITWeek annual conference, hosted by NAREIT.  For […]

The capital window for commercial real estate has substantially lessened if not virtually closed for all but the best borrowers, just like in the early 1990’s.  In this cycle, property owners that financed with floating rate debt are seeing reduced cash flows, and many have negative cash flow after rising interest expense and other operating […]

It’s no secret the office sector faces extreme stress due to the surge in remote work.  Though there was some progress on return to office (RTO) last fall, technology tenants reversed a multi-year leasing spree while financing risks only added fuel to the decline in 2023.  As a result of the pandemic’s ‘forced experiment’ with […]

Every facet of the real estate industry was upended by Covid-19 and ensuing lockdowns, but arguably no industry saw a more material impact than travel and lodging.  We sold the entirety of our lodging exposure during March of 2020 (going from ~5% in early 2020 to 0% by the end of March) as we anticipated […]

Though the elevator pitch for data centers due to their vital role as the backbone of the internet seems like ‘easy money’, investing in this sector has many more elements to consider other than ‘data creation is growing exponentially’.  Yes, the demand for data storage has been a major growth story for ten years, but […]

Although the change in public REIT equity prices over the past 12 months would not suggest it, 2022 actually saw earnings growth arrive above our initial expectations.  Specifically, occupancy continued its positive trajectory, leading to further upward pressure on rents across nearly every property type.  Additionally, the inflationary pressures helped to slow new construction, creating […]

The Chilton REIT Team descended upon San Francisco in mid-November for a packed three days of meetings with management and property tours.  The annual REITWorld conference is extremely important for us to catch up in person with the CEOs and CFOs of our portfolio companies, ramp up on potential new ideas, connect with peers, and […]

For much of the last decade, pundits have been calling for the death of brick and mortar retail.  Rather than a supposed death knell, the last few years – marked by continued e-commerce growth, changing consumer behavior, and supply chain constraints – proved out the benefit of retailers offering customers multiple channels and highlighted the […]