The third quarter brought stabilization to the REIT market, with returns back up to the peak they reached at the end of 2021. Valuations and cap rates have more catching up to do, with certain sectors – data centers, shopping centers, senior housing, and storage – being valued at lower cap rates than pre-COVID. The driving forces behind these lower valuations vary by sector, but underpinning them all is a shift in supply and demand dynamics.
