Not All Real Estate Is Created Equal

  • Concerns about commercial real estate overlook dramatic dispersion across subsectors.
  • US public data center REITs are up 19.4% year-to-date, given accelerated fundamentals, with apartments and logistics also up strongly.1
  • Conversely, US office is seeing all-time high national availability of 26%,2 reflected in office REITs down 16.2% year-to-date.
US Public REIT performance year-to-date
  1. FTSE NAREIT, as of June 30, 2023. Reflects total return of publicly traded REITs by NAREIT subsector from December 30, 2022, to June 30, 2023.
  2. CoStar, as of March 31, 2023. Based on Class A buildings greater than 100,000 sf, excluding owner-occupied buildings.

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Opinions expressed reflect the current opinions of Blackstone as of the date of publishing only and are based on Blackstone’s opinions of the then-current market environment, which is subject to change. Certain information contained in the content discusses general market activity, industry or sector trends, or other broad-based economic, market or political conditions and should not be construed as research or investment advice.

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This commentary does not constitute an offer to sell any securities or the solicitation of an offer to purchase any securities. This commentary discusses broad market, industry or sector trends, or other general economic, market or political conditions and has not been provided in a fiduciary capacity under ERISA and should not be construed as research, investment advice, or any investment recommendation. Past performance is not necessarily indicative of future performance.