The FTSE Nareit All Equity REIT index had its best price return ever in 2021, when growth of 37.29% topped the previous record in 1976. The rebound in REIT valuations has been significant, with key differences among the core asset classes. Multifamily pricing had the strongest performance, growing 58.9%, just ahead of industrial’s 58.51% gains. Retail prices overall grew 45.97%, but with substantial differences between types of centers. Regional mall pricing, for example, increased 83.96%; shopping centers, 59.67%; freestanding malls, a more modest 14.65%.

Hotel pricing grew 18.16%, just ahead of office’s 17.92%. This relative order is closely in line with Real Capital Analytics’ CPPI, which ranks industrial ahead of multifamily for year-over-year price gains through November, followed by retail, hotel, and office. The appreciation discrepancy suggests that investors may pivot back to office in a search for value. PIMCO’s acquisition of Columbia Property Trust points to the increased privatization of office REITs.











Other REIT indexes revealed wide price differences. Self-storage price growth of 74.52% led that of all sectors, followed by specialty (read life science), at 35.61%; infrastructure, 31.56%; timber, 24.71%; data centers, 22.72%; and healthcare, 11.57%.

Download the 2021 REIT Review.