Nontraded REIT Landscape 2026
How Are Structural Features Impacting Nontraded REIT Investors in the US Market?
In the world of nontraded REITs, smoother returns can create a false sense of security. Appraisal-based valuations delay how quickly market changes show in reported numbers, which can understate volatility and correlation relative to listed REITs. Liquidity adds another layer of risk: redemption limits and fund discretion mean investors may not access capital exactly when they need it.
One single fund, BREIT, accounts for nearly half of total industry net assets, while the ten largest vehicles command more than 80% of the $115 billion market. After two years of heavy redemption activity, capital flows have turned positive, though fundraising remains uneven across funds.
Morningstar’s Nontraded REIT Landscape report explores where capital is moving, how disclosure practices vary across funds, and what structural features mean for investors weighing their options. Download the full report today.
