- "The mood among landlords was upbeat, as leasing trends have been strong for well-located stabilized assets as well as the REIT-sponsored redevelopment projects we saw," says Citi's Michael Bilerman after visiting with Equity One (NYSE:EQY), Federal Realty (NYSE:FRT), Kimco (NYSE:KIM), Macerich (NYSE:MAC), Regency Centers (NYSE:REG), and Taubman Centers (NYSE:TCO) over three days last week.
- High barriers to entry have resulted in low supply growth and continued densification of existing assets, he says.
- With competition for assets strong and cap rates low, the primary way for REITs to invest on the West Coast has been through redevelopment of existing assets. In general, he says, REITs have been able to achieve solid returns doing this.