(Chicago)

REITs are in an interesting position right now given the downward rate environment. One on the one hand, that makes them look better, but given that rates are being driven by economic fears, it might not be good after all. However, one area of REITs looks pretty attractive—mall REITS. Yes, that might sound insane given the state of brick and mortar retail, but that is exactly the point. Expectations are so low, that the bar for prices to rise is quite low.

FINSUM: “A” malls, or REITs with top producing properties seem to the best bet, as they are better capitalized to upgrade their stores and have the most resilient locations.