U.S. Public Equity REITs Outshine Broader Market in Occupancy Rates

According to research from NAREIT and CoStar, U.S. public equity REITs have demonstrated superior performance in terms of occupancy rates compared to the broader commercial real estate market. This outperformance highlights the resilience and strength of REITs in the current property landscape.

Data from the fourth quarter of 2023 reveals that REITs in the industrial, apartment, and retail sectors have maintained occupancy rates above 95% for extended periods, showcasing their ability to attract and retain tenants. Even in the challenging office sector, REIT occupancy rates have consistently surpassed those of the broader market since 2000, with an average difference of 1.8%.