Telecommunications claimed the top spot for allocations at 17 percent, edging out residential at 16 percent, which has had the highest allocation every quarter since the second quarter of 2017, according to Nareit.
Telecommunications was the most overweight sector relative to its index weight, invested at 136 percent of its index share, and had the largest annual gain for the quarter. Data centers rebounded with the highest quarterly increase and was the second most overweight sector, invested at 129 percent of its index share.
Office is no longer in the bottom three and has moved from less than 2 percent a year ago to more than 3 percent in the second quarter 2025.
