Strong Employment Causes A Fall in REIT Market

Posted on February 10th, 2015 at 5:22 PM
Strong Employment Causes A Fall in REIT Market

From the Desk of Jim Eccleston at Eccleston Law Offices:

A recent Labor Department report showing the biggest job gain in 17 years has triggered a fall in the U.S. real estate investment market since September. The reason is speculation that the Federal Reserve will boost interest rates in the first half of this year.

Last week, the 166-company Bloomberg REIT index fell 2.8%, the biggest drop since Sept. 12th. The 10-year Treasury yield rose to 1.96% from 1.82%.

Single-tenant buildings and health-care real estate led the decline. Those properties tend to be viewed as bond-like investments because they typically have tenants with long leases. Rising rates make it more expensive for REITs to borrow money, which may hurt their ability to buy property and develop real estate. Higher Treasury yields also reduce the appeal of the stocks' dividend yields.

The attorneys of Eccleston Law Offices represent investors and advisers nationwide in securities and employment matters. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services.

Related Attorneys: James J. Eccleston

Tags: REITs, Labor Department, Bloomberg, Eccleston Law

Return to Archive

TESTIMONIALS

Previous
Next

This was the best of all possible outcomes and I cannot thank you and the team enough.

Michael S.

LATEST NEWS AND ARTICLES

June 27, 2022
SEC Investigates A.G. Morgan Financial Advisors and Others For Selling Unregistered Securities

The Securities and Exchange Commission (SEC) is investigating Vincent Camarda, James McArthur, and A.G. Morgan Financial Advisors.

June 24, 2022
SEC Charges Advisors and Their Firm With Reg BI Violations Over Sales of GWG L Bonds

The Securities and Exchange Commission (SEC) has charged Western International Securities and five of its advisors with violating Regulation Best Interest (Reg BI) when they recommended and sold high-risk debt securities known as L Bonds to retirees and other retail investors.

June 23, 2022
Former Credit Suisse Advisor Prevails in Deferred Compensation Claim

A former Credit Suisse advisor has prevailed on a $2.2 million arbitration claim after alleging that the firm improperly withheld his deferred compensation when it discontinued its U.S. brokerage business in 2015.