Commercial real estate investment has increased significantly since the end of the recession, and led by real estate investment funds, it has boomed during the first half of the year, according to a report from Morningstar.
In total, REITs had an annualized return average of more than 30 percent during the past three years, which was the highest figure in any category. For this year, the figure improved approximately 17 percent, which was more than twice the amount of the diversified stock funds average, The Associated Press reported, citing the report. This has helped REIT stocks receive nearly $3 billion in new investments during the first half of the year.
Despite the significant gains, this may only be a temporary theme in the market, as the economy has slowed considerably, and a further lack of growth is projected, the report noted.
"Investors should not expect these kind of strong returns going forward," Rob Wherry, analyst for Morningstar, told the news source.
The report added that due to the lack of severe declines in commercial real estate during the recession, when compared to the residential issues, REIT stocks have been able to flourish.