Market Commentary

Historical data show that, on average, real estate has enjoyed solid total returns across different interest rate regimes with REITs consistently outperforming their private market counterparts. 

REITs posted positive returns to begin 2025 as the FTSE Nareit All Equity REITs Index rose 1.0% in January.

GRESB, the Global Real Estate Sustainability Benchmark, has released its 2024 data on environmental stewardship, social responsibility, and good governance for real estate. 

U.S. REITs raised $12.5 billion from secondary debt and equity offerings in the fourth quarter of 2024.

Specialty, data centers, health care REITs led returns in 2024.

In November, the FTSE Nareit All Equity REITs Index gained back most of the ground lost in the previous month, posting a total return of 3.5%.

A recent Nareit commentary examined occupancy rate momentum across the four traditional property types and found that property fundamentals have generally been soft or softening across these sectors.

The recent Cornell University/Hodes Weill’s 2024 Allocations Monitor report found that in 2023, institutions were more active allocating capital to REITs, as investors looked to capitalize on discrepancies between public and private market valuations.