REITs Close the Door on Underwriters
Wall Street firms this year have been enjoying a surge in fees from a robust crop of stock offerings, but underwriters that focus on public U.S. real estate investment trusts have largely been sitting out of the party.
The reason: Private investors are paying more for commercial property than public companies are willing to pay. As a result, private holders of real estate are more likely to sell property to private investors than through initial public offerings.