Actively managed real estate investment funds continued to shift allocations to telecommunications, healthcare and office during the first quarter of 2025, Nareit reported. Self-storage also performed strongly during the quarter.
Telecommunications was the most overweight sector relative to its index weight, invested at 132% of its index share and the second highest allocation overall after residential. Healthcare had the largest year-over-year increase among the sectors for the second quarter in a row and had the third highest allocation among the funds.
Steady gains in office put the sector at 72% of its index share, up significantly from 48% of its index share in Q1 2024. Self-storage has also rebounded to nearly its index weight in the funds.
Residential remains the property sector with the highest investment by actively managed funds, at 16.9% of total allocations. Telecommunications edged out healthcare for the second highest allocation at 16.3%, with healthcare at 15.9%.
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