“REITs could continue to attract modest amounts of capital given low interest rates,” Michael Bilerman, head of the real estate and lodging team at Citi Investment Research & Analysis, commented.

Those who believe another deep U.S. recession is looming would naturally want to avoid this asset class as an economic pullback would diminish demand for commercial office space, increase vacancies and reduce cash flows from properties.

Vanguard REIT ETF

For more information on real estate investment trusts, visit our REITs category.

Max Chen contributed to this article.

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