In sharp contrast to the decline seen in commercial property values, the total return of the FTSE NAREIT Equity REIT Index is up nearly 2 percent through Aug. 31 and up nearly 6 percent for the third quarter, according to the National Association of Real Estate Investment Trusts (NAREIT).

Washington, D.C. (PRWEB) September 8, 2008 -- In sharp contrast to the decline seen in commercial property values, the total return of the FTSE NAREIT Equity REIT Index is up nearly 2 percent through Aug. 31 and up nearly 6 percent for the third quarter, according to the National Association of Real Estate Investment Trusts (NAREIT).


While it may seem counter-intuitive, history indicates that REIT shares are likely to continue trending up while direct commercial property values, as measured by the NCREIF Property Index, sink.

Historically, cyclical movements of the U.S. REIT index precede the movements of the NCREIF Property Index by four to eight quarters. Consider the following points:

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