The modern form of Real Estate Investment Trust in the United States traces its root in the 1960 as legislative initiatives gave birth to public ownership of commercial real estate, which since then has taken the path largely dictated by the pulse of the capital markets.

Growths were seen for the most part while intermittent episodes of declines marred some bothering moments for the segment but the sector’s last recorded upward surge was during the 1990s when private capital was marked with exclusivity while the equity markets opened their gates for real estate players to access capital in pursuit of expansion.

Analysts said that the similar environment is currently in effect in the real estate capital markets REIT may be flexing its muscles soon for another growth campaign.

The new momentum apparently started in March 2009 when Simon Property Group saw a successful capital raising and traded 12 million of its shares at $31.50 per security amidst the height of the global financial crisis.

Simon’s successful offering prompted other REIT IPOs and by the end of 2009, some $3 billion, covering nine IPOs, were traded and by the middle part of the current year, six IPOs had amasses $1.6 billion and most noteworthy of that bunch was Hudson Pacific Properties’ remarkable $218 million IPO.

Experts said that many of the offerings were packaged as blind pools, with sponsors intending to pour the proceeds in distressed properties while other IPOs were bundled as roll ups, with backings of investors planning to take the assets into an operating partnership and send the REIT to public offerings.

Economists said that REIT IPOs may be experiencing some dizzying pace in collecting success but they cautioned that some IPOs have encountered failures owing to the uncertain market conditions or investors were disappointed by the offerings inability to fetch the ideal share prices.

These downside factors, however, did not dampen the resolve of many sponsors to pursue the promising enterprise as more REIT IPOs were being lined up with more diverse investors from the hospitality, health care and industrial companies dipping their fingers on the re-emerging investment platform.

Stock market watchers said that the attraction of commercial private properties companies into public trading was mainly due to its offering of an alternative source of funds, leading to stabilized debt reduction and balance sheet liquidity.

Also, Green Street Advisors said that many real estate companies were lured by the higher values of REIT properties, which were underpinned by liquid investments, transparency, competitive dividends professional management and most of all with the upbeat anticipations that the property market would be hauled up by a recovering economy.

However, the speed seen in REIT’s impressive equity pick ups were not immediately translated into property investments despite the plunging values of assets by as much as 40 percent as the 2009 data showed that public REITs purchasing of properties had a steep decline from 6,351 to a measly 360 four years after.

Experts cited a number of reasons for the drop but the most glaring is the fact that many owners/investors were on a standstill and fervently hoping for spikes in asset values before they put back their properties in the market.

But with up to $1.24 trillion worth of US commercial real estate loans up for refinancing over the next four years, experts said that banks and owners may find it more fruitful to sell their assets at this time rather than face the specter foreclosure proceedings, which should spawn great buying spree for REITs.

The prevailing environment may not be that welcoming for REIT IPOs for now but many experts firmly believed that the segment’s success story and apparent efficiency would entice willing investors and funds that help successful REIT players to pursue long-term opportunities and corporate growth.