Nareit's REIT Report Podcast

Mike Watts, CBRE’s president of investor leasing in the Americas, was a guest on the latest episode of the REIT Report. Watts focused on trends in office supply and leasing, the impact of office conversions, tenant expectations toward amenities, and more. Watts noted that CBRE expects new office deliveries in 2025 to be about 25% of what they were in 2019. Office deliveries are not expected to pick up in 2026 either. Lack of new construction at the top of the office market creates a ripple effect as demand shifts to lower tier assets. Class B office assets still retain appeal for certain office tenants, he pointed out. Meanwhile, Watts described the tenant experience as “more important than ever,” with companies keen to create a positive work environment for all levels of employees, rather than just senior level staff. Also important today is the concept of “how the building meets the street,” he said, namely access to retail that meets the specific needs of tenants and that encourages companies to renew their leases.

Rich Hill, the global head of real estate research at Principal Asset Management, shares insightful perspectives on the current REIT landscape. He highlights the importance of incorporating listed REITs into private portfolios to enhance stability and optimize returns. Hill discusses global opportunities in diverse sectors like data centers and senior housing, emphasizing their potential amid market dislocation. He advocates for a strategic 10% to 30% allocation to listed REITs, reinforcing their role in navigating the evolving commercial real estate market.

Ed Pierzak, Nareit's Senior Vice President for Research, shares deep insights into the roller coaster ride of the REIT market in 2025. He discusses how REITs have shown resilience amidst economic turbulence and evolving trade policies. The conversation highlights the strength of REIT balance sheets in facing market fluctuations and offers a cautiously optimistic outlook despite interest rate challenges. Pierzak emphasizes the pivotal position of REITs for future growth, even as new tariff actions loom on the horizon.

Earnest Sweat, a tech innovation expert, was a guest on the latest edition of the REIT Report podcast. In the first of a three-part miniseries, Sweat began the process of examining the intersection of AI with the REIT sector.Sweat is a venture capitalist and general partner at Stresswood, an early-stage fund focused on backing exceptional founders building the next wave of enterprise technology.Sweat said technology can be beneficial because “companies are all expected to produce more with fewer resources.” He stressed the importance for REIT leaders to speak with middle management to ascertain where AI can handle repeatable tasks, and to stress to management that technology is not a “precursor to them losing their jobs.”

Adrianna Giesey, senior portfolio manager at Russell Investments, shared how the firm is providing investors with access to modern economy real estate by incorporating a specialty sector REIT strategy.“We like the REIT market to gain access to the specialty sectors, which is a nice compliment to a core real estate portfolio,” Giesey said. She added that Russell Investments expects these modern economy sectors, such as data centers and single family rentals, to see stronger cash flow growth over the medium term.The best way for investors to gain access to modern economy real estate is to trim traditional private real estate holdings and add listed specialty sectors, Giesey said. “This is the most efficient and low-cost way to access these specialty sectors at scale. We've helped clients do this in the past, and it's been a success all around.”

Conor Flynn, CEO of Kimco Realty (NYSE: KIM) and Nareit 2025 Chair, joined the 500th episode of the REIT Report to provide a close-up view of how a leading retail REIT is navigating today's complex market environment.Flynn highlighted the resiliency of both the consumer and tenant base in the open-air shopping center space, pointing out that there’s been 13 years of virtually no new supply.“That obviously is a big benefit and it's showcasing in the occupancy side because occupancies now are at all-time highs. Even with some disruption from tariffs and some smaller bankruptcies, retailers are continuing to expand their footprint and have identified that the store base is really the best opportunity, and the most profitable, to service the consumer in as many ways as possible,” Flynn said.He noted that convenience and value are “the sweet spot of where consumers are focused today.”

Matt Werner, managing director and senior portfolio manager at Chilton Capital Management, shares his insights on active REIT strategies in volatile markets. He highlights how current tariff-induced fluctuations create ideal conditions for taking advantage of undervalued assets. Werner notes the resilience of REITs, particularly in sectors like data centers and healthcare, which thrive despite economic challenges. With growing dividends and favorable valuations compared to equities, he encourages investors to rethink their perspectives on the REIT landscape.

Tim Bodner, real estate deals leader at PwC, shares valuable insights into today's evolving real estate landscape. He notes robust transaction activity across sectors like office, hospitality, and data centers. Bodner emphasizes that REITs are navigating uncertainty with adaptability, focusing on controllable factors. The conversation reveals trends in public-to-public and public-to-private transactions, and highlights the growing intersection of real estate and infrastructure investments amid foreign investment trends.

Michael Seton, president and CEO of Sila Realty Trust, Inc . (NYSE: SILA), joined the latest episode of Nareit’s REIT Report podcast to reflect upon the one-year anniversary of the company’s listing on the New York Stock Exchange.Seton said he is “extremely optimistic” about Sila’s future, noting that the REIT is scaled to grow its portfolio, which currently exceeds $2 billion in assets. He said “very high quality” opportunities exist throughout the marketplace.“If a seller is trying to bring a product to market today to raise capital or sell a property, it's got to be high quality because capital, generally speaking in the market, is constrained,” he said. While focused nationally, Sila has a particular emphasis on Sun Belt states.During the interview, Seton discussed Sila’s decision to do a direct listing on the NYSE and why it was confident in that choice, as well as what its Wall Street sponsorship looks like today. He also highlighted the tailwinds supporting the health care sector and described what makes health care so compelling to investors right now.

In this episode of the REIT Report special series, “Building Resilience,” Joanna Frank, Founder, CEO, and President of Center for Active Design, shares how focusing on health and wellness in the built environment builds resilience by focusing on the human impact of extreme weather events.In this special episode of the REIT Report, part of an ongoing series, “Building Resilience,” covering issues facing the REIT industry as it remains focused on investing for the long term, Joanna Frank, Founder, CEO, and President of Center for Active Design (CfAD), operator of Fitwel and Active Design Advisors, Inc (Adai) to discuss how public health strategies are helping to transform the built environment and support communities to be more resilient.“How do we use our built environment to create an environment that is resilient and can foster that quality of life and safety for the residents? This was first, I think, brought to the public stage at COP 28, where there was an entire day about health because the true cost of climate change can really only be calculated when you consider the health impacts, not just in this country, but globally, and they are massive.”