U.S. REITs Rebound as Low Rates and Rental Demand Drive Recovery

Real Estate Investment Trusts (REITs) in the U.S. are seeing renewed investor interest amid low interest rates and strong rental demand in post-pandemic markets. Since April 2025, the total REIT market cap has grown by 6.5%, recovering to near pre-2020 levels.

Key segments leading the rebound include suburban office parks, logistics centers, and residential micro-units. Suburban commercial properties now enjoy over 90% occupancy, as hybrid work policies encourage office decentralization.

Logistics REITs are also booming, supported by surging demand for e-commerce and AI-driven warehousing. Meanwhile, data center REITs benefit from the exponential growth in cloud services and AI training workloads.

Investors are increasingly focused on lease duration and inflation-linked rent clauses. This makes REITs with long-term leases and CPI-adjusted contracts particularly attractive in today’s rate environment.

Concerns remain, especially around debt servicing if interest rates spike. Still, for now, REITs are offering compelling yields and sector-specific growth opportunities in a market that values real assets.