The public REIT market has struggled in 2020 after a stellar performance in 2019. The FTSE Nareit All Equity REITs index posted a total return of 28.66 percent in 2019; through November, the index had recorded a 2020 year-to-date total return of –7.39 percent.
Data center REITs, however, have continued their strong performance. Following on the heels of a robust total return of 44.21 percent in 2019, the sector has fashioned a total return of 17.19 percent year-to-date through November.
Among the five companies that comprise the sector, the leader has been Equinix, with a one-year total return of 23.73 percent as of Dec. 28. Following close behind were Digital Realty (21.26 percent), QTS Realty Trust (18.06 percent), CyrusOne (16.41 percent) and CoreSite Realty (15.86 percent).
The forecast for data center REITs in 2021 remains positive thanks to a number of demand drivers. Occupier demand for data center properties is growing due to the increasing demand for
