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Aug
16

Credit Downgrade Likely to Affect REITs

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The recent decision by Standard & Poor’s to downgrade the United States’ sovereign credit rating could have major effects on the commercial real estate market and REITs, according to Jeffrey Rogers, president and chief operating officer of Integra Realty Resources.

In a video interview with REIT.com, Rogers gave a broad overview of the economic factors that are likely to come into play in the wake of S&P’s announcement. In terms of both government and private-sector spending, look for noticeable cutbacks, he said.

“On the corporate side, we have seen in this recession and in previous recessions that corporations tend to hoard cash in these situations, and this will be no different,” Rogers commented. “There’s more uncertainty in the marketplace, and with more uncertainty comes conservatism.”

READ MORE AND WATCH THE VIDEO HERE

Categories : National News
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