The rapid rise in interest rates has been a major headache for real estate investment trusts (REITs). Rising interest rates increase financing costs, and REITs have to compete with bonds, which are increasing attractive given their yields.

We are seeing plenty of negative sentiment in the office commercial real estate sector. That said, not all commercial real estate is equal; location, tenant base, and quality matter as well. Alexandria Real Estate Equities (NYSE: ARE) is an office REIT that focuses on life sciences companies. Is it a buy? 

Image source: Getty Images.

Continue reading

Source Fool.com