National CRE News In Your Inbox.
Sign up for Connect emails to stay informed with CRE stories that are 150 words or less.
Active Fund Managers Shift Allocations to Digital and Healthcare Real Estate
Data centers and healthcare real estate gained year-over-year in actively managed real estate investment funds’ shares of REIT assets under management, while industrial and retail properties lost ground. That’s according to Nareit, which said that active managers continued to shift allocations to digital and healthcare sectors and away from commerce sectors in the fourth quarter of 2024.
Telecommunications and data centers were the most overweight sectors relative to their index weights, invested at 123% and 120% of their index shares, respectively, Nareit reported. Healthcare jumped to the second-highest absolute allocation at 14.6% in Q4, reflecting the largest year-over-year increase among the sectors.
Residential remains the property sector with the highest investment at 16.7%. Retail and telecommunications tied for third place at 13.4%, followed closely by data centers at 13.1%. At the bottom of allocations were office and lodging properties, according to Nareit.
- ◦Sale/Acquisition
