In the second quarter of 2025, 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.
Nareit tracks quarterly investment holdings for the largest actively managed real estate investment funds, focusing on REIT investment for insights into expert investor sentiment.
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 and the largest share in actively managed funds. 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
