National Real Estate Investor's Bendix Anderson looks at the possible acceleration in transaction velocity for apartment REITs in the second half of the year.

Many REITs were net sellers in the first half of 2016, but as their stock prices recover, and their cost of capital improves, analysts expect to see more volume in the second half.

“We do expect to see a pickup in REIT activity due to the shift in stock pricing,” said Christine Akins, senior managing director of multifamily for CBRE Capital Markets, just before Mid-America announced its acquisition of Post.

Still, even without the REITs driving the market—they accounted for just 3.45% of transaction volume in the second quarter, compared with 10% on average—the market has been robust.

Overall, investors continue to spend a tremendous amount of money on apartment properties. Buyers of all types bought $32.7 billion in apartment properties in the second quarter, up slightly from the same period last year.

Prices for apartment properties continue to rise relative to the income produced at the properties, driving down yields. Cap rates fell to an average of 5.6 percent in the second quarter, down from 6.0 percent the year before, according to RCA.

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