Real estate stocks are starting to recover, says Janus Henderson. Here’s where it sees opportunity

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The uptick in commercial real estate transactions is one sign of an inflection point in the cycle, says Janus Henderson.

There are signs of a recovery in real estate stocks — and the new cycle should continue for several years, according to Janus Henderson. For the first time in more than two years,

's U.S. real estate transaction volumes appear to have increased, a Nov. 11 report from Janus portfolio managers Greg Kuhl and Danny Greenberger said. is the world's largest property brokerage and a bellwether for the corporate real estate sector, they noted. In addition, reported a 20% increase in revenue from U.S. investment sales. That uptick in transactions is typically an excellent sign of an inflection point in the cycle, Kuhl said. "The recovery in transactions … highlights multiple avenues for to boost earnings growth, strengthening the outlook for asset values, and ultimately, the potential for higher share prices and growing dividends in a new cycle," the report stated.

 

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