2026 Might Be REITs’ “Comeback Year” (Here’s Why)

Real estate has felt like it’s been running with a weighted vest since 2022. An Invesco piece argues 2026 finally looks more supportive for REITs—not hype, just a better setup.

Why the vibe could shift

• Economic resilience + easing financial conditions improve visibility for property cash flows.

• New supply is muted in many sectors, which reduces oversupply risk and can support rent growth.

The “opportunity” argument: REITs still look discounted

Invesco points out REITs are priced cheaper than the S&P 500—about ~5 multiple turns lower—and the last few times that gap got extreme (GFC, COVID, and the recent AI-fueled equity run), it eventually narrowed.
They also note REITs were around a ~2% discount to NAV vs. a more typical slight premium historically.

Where they see strength (and where they don’t)

Tailwinds + discounts:

• Data Centers

• Residential (Apartments + Single-Family Rentals)

• Self Storage

Pricier: Health Care (premium to NAV)
Still challenged: Office

Growth outlook

They cite expectations for ~6.5% FFO growth in 2026, above the long-term average they reference.

Bottom line

If financing keeps normalizing and cash flows keep improving, REITs could have a stronger total-return setup in 2026—especially the sectors with structural demand that are still priced at discounts.