An occupancy rate highlights property market fundamentals; it is a measure of the interaction of supply and demand. In the first quarter of 2026, Nareit’s REIT Industry Tracker broadened its coverage of occupancy rates from four to 10 property sectors. This recent data show that REITs have maintained strength and persistence in occupancy rates across property sectors during uncertain economic times.
Using data from Nareit’s REIT Industry Tracker, the chart above displays occupancy rates from the first quarter of 2025 and the first quarter of 2026 for 10 property sectors: apartments, diversified, gaming, health care, industrial, lodging/resorts, office, retail, self-storage, and specialty. Diversified REITs own and manage a mix of property types, e.g., both office and industrial, and collect rent from tenants, making them ideal for investors looking to gain exposure to a variety of real estate asset types. Specialty REITs own properties that do not fit within the other REIT sectors; examples include movie theaters, farmland, and outdoor advertising sites.
Year-over-year, occupancy rates have shown strength and persistence across the 10 examined property sectors. The two sectors with the largest occupancy rate changes were health care and lodging/resorts. The 2.1% decline in the health care occupancy rate was primarily driven by lease expirations and operating property sales at one of the sector’s larger constituents. The lodging/resorts occupancy rate increase of 2.5% stemmed from broad-based strength in leisure demand and business travel.
The abilities of REITs to deliver strength and persistence in occupancy rates showcases their asset selection and management expertise. These skills also help maintain and propel revenue gains. Despite an uncertain economic environment, REITs have reliably and dependably continued to deliver solid operational performance to their investors.