REIT Property Counts and Estimated Gross Asset Values Surge in the US

Strategic Insights -

The National Association of Real Estate Investment Trusts (NAREIT) has released its annual update of REIT property counts and estimated gross asset values by state and property sector. As of the end of 2023, U.S. public REITs owned an estimated 580,000 properties, a 1% increase from the previous year, and 15 million acres of timberland across the U.S.

Key Takeaways:

  • The number of data centers increased by 17% in 2023, reaching 268 properties at the end of the year, although this is still lower than the 2020 peak of 357 properties.
  • Residential property types, including apartments and single-family rentals, as well as storage, experienced the largest percentage increase in properties since 2018, with a 35% growth rate.
  • Specialty properties, including gaming, are up 6% for the year, but down 5% since 2018.
  • Retail properties saw a slight decline in 2023, ending a streak of yearly increases since 2018, with a 27% growth rate over the past five years.
  • Industrial properties were up 1% year-over-year, marking a 24% increase since 2018.
  • Health care, lodging/resorts, and outdoor advertising properties saw less than 4% growth in 2023, but have declined since 2018.
  • Office properties experienced the largest decline for the year, down 3%, while timberlands and cell towers were down 1%.
  • The office sector has seen the second-largest decline since 2018, with a 24% drop, while timberland acres are down 4% and cell towers are up 4%.

Statistics:

  • Estimated number of REIT properties at the end of 2023: 580,000
  • Number of data centers in 2023: 268
  • Net increase in data centers from 2022 to 2023: 17%
  • Residential property growth rate since 2018: 35%
  • Specialty property growth rate since 2023: 6%
  • Retail property growth rate over the past five years: 27%
  • Industrial property growth rate since 2018: 24%
  • Health care property growth rate in 2023: 3%
  • Lodging/resorts property growth rate in 2023: 4%
  • Outdoor advertising property growth rate in 2023: 3%

Sources:

  • National Association of Real Estate Investment Trusts (NAREIT) Annual Update
  • REITs Across America website
  • FTSE Nareit All Equity REITs Index
  • Nicole Funari, NAREIT