I have gone on record in numerous venues (here's a post
from May 2 ... and here's a longer story
from around that same time) claiming that commercial REITs
could be in trouble. I pointed out that valuations were extremely stretched, that tighter credit conditions and rising interest rates could cause them problems, and that the apartment sector in particular faced significant headwinds
due to the supply overhang of former-flips-turned-rentals.
Today, the Dow Jones U.S. Real Estate Index Fund is breaking down from critical support, continuing a sell-off that has stretched back several weeks. Yep -- looks like Sam Zell
sold out at the top to the geniuses at the Blackstone Group, as I mused
back in November.