Vornado Realty Trust Wrongly Caught in Retail REIT Vortex

Retail developers in the U.S. have been caught offsides, I believe. They have overbuilt retail space to the point where the U.S. has multiple times the retail space per person than does western Europe. At the same time, e-commerce has caught on in the U.S. and is taking larger and larger slices of the overall retail pie as habits change. As e-commerce continues to take share, bricks-and-mortar retailers will have an increasingly difficult time, which will continue to hurt retail REITs as a sector.

I'm a big believer in finding diamonds in the rough. Some retail REITs are going to be hurt than others, but most, if not all, are in the bargain bin right now. One of those is New York City-focused Vornado Realty Trust (VNO) . Indeed, it is an office REIT every bit as much as a retail one. (Vornado recently was downgraded to Hold from Buy by TheStreet's Quant Ratings; for a rundown on what it thinks of the company, click here.)...423 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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