This year witnessed a substantial decline in the sales of non-traded real estate investment trusts (REITs), with the industry raising $9 billion through September of 2023.
This marks a stark contrast from the previous consecutive years, where over $30 billion in new capital was generated annually. According to Robert A. Stanger & Co. Inc., financial advisors sold $33.3 billion for nontraded REITs in 2022 and $34.4 billion in 2021. Notably, popular non-traded Net Asset Value (NAV) REITs, including Blackstone Real Estate Income Trust Inc., experienced a significant drop, raising just $331 million in September, compared to $2.15 billion in the same month in 2022.
According to InvestmentNews, the decline signifies a reversal for the non-traded REIT industry, which had enjoyed remarkable success for several years, after facing challenges in 2016 when criticism emerged about excessive commissions amid new industry rules promoting fee and pricing transparency.
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