REITs Poised To Rebound Amid Lower Rates, Solid Economy
Financial Advisor | By Christopher C. Williams
After a year of underperformance, REITS are set to rebound in 2025, buoyed by improving operating fundamentals, solid economic growth and an expected uptick in M&A activity.
And, importantly, the much-maligned office sector might have bottomed out.
Offices are less than 4% of overall REIT capitalization, but headlines about empty office cubicles, fire sales of underused office buildings and mounting bad CRE debt on banks’ balance sheets tend to negatively color the whole diversified sector. But in the third quarter, offices posted the fourth consecutive period of sequentially improving leasing volume, signaling that the sector could continue to be a tailwind for the sector this year.