The recovery in commercial real estate accelerated this spring, according to the news from second quarter REIT earnings reports. Earnings of all equity REITs, as measured by funds from operations (FFO), rose 19.8% in 2021:Q2 compared to the prior quarter. Significantly, FFO of the REIT sector as a whole rose slightly above the peak level prior to the pandemic, and has fully recovered from the declines in earnings experienced during the shutdowns and social distancing of last year (aggregate REIT earnings figures are reported in the Nareit T-Tracker, a comprehensive measure of REIT earnings and operating performance. Full disclosure: I am senior economist at Nareit and help produce the quarterly T-Tracker).

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