REITs predicted to perform well in 2008.(knowitall)(real estate investment trusts)(Brief article)

Despite poor performance overall for 2007--total returns have declined 21.9 percent from their peak just a year ago--analysts say many REITs will be in a solid position to handle the predicted economic challenges in the year ahead and perform well.

Some REIT property sectors will do better than others, analysts say. Industrial REITs may benefit from global trade and are continuing to experience strong demand, while the healthcare REITs will likely find continued opportunities from the growing number of aging Americans. As more potential homebuyers decide to rent rather than buy, the apartment REITs may benefit from the current housing market slowdown.

In addition, most REITs may perform well in 2008 because the fundamentals within property sectors have remained solid: Vacancy rates are low, and rents in retail, office and industrial properties are still high. Most sectors also haven't suffered from the overbuilding that prevailed throughout the commercial property sector in the early 1990s.

Two sectors that may suffer include the retail market if consumer spending slows, and the office market if companies take less space or hold off their leasing decisions.

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