Investment in so-called "direct participation programs" (DPPs), such as non-traded REITs, limited partnerships and limited liability companies, hit a record $12.2 billion for 2007, according to an analysis performed by Robert A. Stanger & Co.

Non-traded REITs accounted for $11.4 billion of the new investment, or almost 95 percent of the total. The 71 percent increase from 2006 in non-traded REIT investment reflected the impact of recent liquidations among competitors, which then poured into new companies, according to the analysis.

While the researchers called the long-term demand for non-traded REITs "bullish," they cautioned that the near-term outlook is "more uncertain." Consequently, they projected DPP investment to fall slightly more than $7.0 billion for 2008.

NAREIT Applauds REIT Measures in Housing Bill Housing stimulus legislation containing important NAREIT-supported provisions advanced through Congress in early April. The House of Representatives Ways and Means Committee overwhelmingly approved Chairman Charles Rangel’s (D-N.Y.) Housing Assistance Tax Act of 2008 (H.R. 5720). The bill includes nearly all of the REIT-related provisions of the REIT Investment Diversification and Empowerment Act of 2007 (H.R. 1147 and S. 2002), a bill endorsed by NAREIT. Meanwhile, the Senate approved a similar bill, the Foreclosure Prevention Act of 2008 (H.R. 3221), by a wide margin. Rangel’s bill now awaits full House approval before the two chambers can meet to reconcile the legislation into its final form.

Commercial Acquisitions Topped $1 Trillion in 2007, Study Shows Acquisitions of commercial real estate around the world in 2007 topped the $1 trillion mark, newly released data show. The finding was reported in February by independent research firm Real Capital Analytics in a new series on global capital investment. The figure accounted for sales of greater than $10 million across 75 countries. RCA President Robert M. White said the total could approach $1.5 trillion if smaller transactions were included. “The size of the commercial property marketplace is much larger than previous estimates,” White said. Real Capital identified more than 100 cities worldwide where commercial real estate sales of more than $1 billion were reported. These included 48 cities in North America, 35 in Europe and 21 in Asia. Real Capital projected that commercial property sales volume in Asia for 2008 could outpace volume levels for either Europe or the Americas. The study found that office space accounted for $434 billion, or 32 percent, of the 2007 sales activity worldwide, making it the most active sector. The report also revealed that half of all land acquired by developers in 2007 was located in China.