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REITs keep outpacing equities, with strong 2026 momentum ahead
Nareit’s research vice president said REIT sectors except two are up this year, led by data centers and lodging and resorts.
Nareit Senior Vice President for Research Ed Pierzak said REITs have continued to outperform so far this year, with gains across most property sectors and what he called really strong momentum for the group through the rest of 2026 and beyond, according to an interview on the REIT Report podcast.
Pierzak noted that when REITs have led early in the year, they often go on to beat broad equity market performance for the remainder of the year, barring unexpected shocks. He also pointed to valuation divergence between REITs and the broader equity market, adding that outperformance potential may emerge when that gap closes.
By sector, Pierzak said data centers have been among the top performers this year after ranking among the worst performers in 2025. Lodging and resorts took the top spot to date, supported by strong leisure and business travel demand.
Pierzak also discussed REIT M&A trends and how REITs are increasingly used to complement existing investment portfolios, framing the discussion around REITs as firms that own or finance income producing real estate across multiple property sectors.