Iman Brivanlou, head of income equities at TCW, discusses his outlook for REITs for 2025 and where he sees opportunities in the new year. In addition, he explores the macroeconomic factors shaping the sector, including interest rates, inflation, and financing conditions, as well as the relative attractiveness of REITs compared to other asset classes. While certain areas, such as office real estate, may continue to face headwinds, sectors like data centers are demonstrating strong growth potential.
How do you see the overall outlook for REITs in 2025? What are some risks and challenges?
We remain largely constructive on the real estate sector. While certain areas (e.g. office) may continue to experience demand weakness, other areas (e.g. data centers) are currently thriving. Furthermore, we believe that with the Fed still on a monetary loosening campaign, the path of least resistance for interest rates is likely lower (albe
