US Traded REITs Market Insights & Trends 2026
How Will Rising Interest Rates Impact the REIT Sector in the US Market?
Real estate investment trusts have changed considerably over the past 15 years, with the "other" category—including tower and data center REITs—rising to 28% of the market from just 6%. This shift towards new types of real estate means a divergence from other sections of the market as office REITs fell to around 5% from 23% over the same period.
The sector has also grown from roughly 20 companies in the 1970s to 155 in 2026, yet REITs still own only about 10% of US commercial properties, reflecting a highly fragmented market. REIT performance has also shown a consistent negative correlation with interest rate movements, as rising rates draw income-focused investors toward risk-free alternatives
Together, these shifts in composition, rate sensitivity, and market concentration define the landscape investors need to understand before allocating to REITs today. Download Morningstar’s US Traded REITs Landscape for the full picture.
