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REITs show strong 2026 momentum as most sectors post gains
Nareit’s Ed Pierzak said REITs have outperformed so far this year, with only two sectors down and data centers leading after a weak 2025.
Nareit Senior Vice President for Research Ed Pierzak said REITs have maintained outperformance so far in 2026, pointing to “really strong momentum” for the sector for the rest of the year and beyond, according to a discussion on the REIT Report podcast.
Pierzak noted that REIT outperformance early in the year has often carried through the remainder of the year versus broad equities, unless unexpected shocks hit markets. He also said that valuation gaps between REITs and the broader equity market could matter, including the potential for outperformance if that divergence narrows.
On sector performance, Pierzak said data centers were among the top performers so far in 2026 after being among the worst performers in 2025. He added that lodging and resorts are taking the top spot year to date, supported by strong leisure and business travel demand.
The podcast also covered REIT valuation divergence versus broader equities, activity in private real estate, and REIT M&A trends, with Pierzak describing how REITs are increasingly used to complement existing investment portfolios.