Nareit's REIT Report Podcast

Jacob Rowden, research director at JLL, told the REIT Report podcast that a 6.4% increase in U.S. office leasing during the last 12 months reflects an ongoing post-pandemic structural shift as companies realign space requirements with actual headcount.

By mid-2025, companies had expanded headcounts by more than 5% from 2019 levels. At the same time, they had cut almost 10% of their office portfolios, Rowden noted. This gap between workforce size and available office space has fueled the current surge in leasing.

Rowden said that while certain geographic markets have been more advanced within this recovery, “today we’re at a point where there’s more parity across markets than there has been really at any point in the last six years.”

Meanwhile, five consecutive quarters of positive net absorption “gives us a lot of confidence that we've entered a new expansionary cycle. This is not a one quarter or two quarter temporary trend that's potentially going to reverse in the short term. It's something that we're seeing sustained over more than a year now.”

Chapters:
00:00 AI Hype Reality Check 
00:30 Welcome and Guest Intro 
00:49 Why Leasing Is Rising 
02:35 Which Markets Lead 
03:38 Net Absorption Signals 
05:18 Inventory Shrinking Conversions 
09:49 Trophy Rents Surge 
12:05 Is Recovery Durable 
13:50 Interest Rates Volatility 
17:03 What to Watch Next 
19:16 Closing Thanks Subscribe

Mike Moran, managing director, and Audrey Symes, head of research at global organizational consulting firm Jackson Lucas, joined the REIT Report podcast to share insights into the intricacies of c-suite succession and hiring practices in the REIT sector.

Internal succession remains the dominant model for REITs, a trend supported by Jackson Lucas’ most recent data. Moran explained the reasons for this preference: internal candidates are already known to the board, they come with valuable institutional knowledge, and promoting from within can motivate existing employees.

However, the decision to promote internally often hinges on the company's performance prior to the transition, with boards more inclined to continue current strategy if a company is thriving.

Despite the strong trend towards internal hiring, “the interesting part is finding out where companies choose to break from that… these roles that are filled from outside really tell you what the company thinks it needs from the market to go forward,” Symes said.

Chapters:
00:30 Welcome and Guests
00:54 Turnover Trends Overview
03:08 When REITs Hire Outside
03:59 CFO Hiring Differences
04:48 Accounting and Audit Complexity
05:49 Tech Leadership and AI
07:09 Company by Company Variation
08:04 Building the Talent Bench
09:11 Where Talent Is Tight
09:53 Final Takeaways and Wrap

Carrie Szarzynski, executive managing director,at Hiffman National, joined a sponsored episode of the REIT Report podcast to discuss how property management can operate as a vital profit center to create growth in today's market.

Hiffman National is one of the nation’s largest independent commercial real estate property management firms, providing institutional and private clients with customized solutions for property management, project management, property accounting, lease administration, marketing, and research.

Operational excellence has emerged as a critical factor in dictating performance across various property types, Szarzynski notes, and stresses the importance of managing assets thoughtfully, moving beyond merely collecting rent. "It's about thinking like an asset manager."

This approach includes identifying low-cost improvements that enhance tenant satisfaction and engagement. For instance, she recounts a successful case where Hiffman National helped a client identify adjustments that quadrupled their initial expectations without impacting tenant experience.

In today's high-mobility environment, retaining tenants is more crucial than ever. Szarzynski points out that tenants are more inclined to stay put if they feel valued and heard. "It's that manager touch that makes all the difference."

Deloitte’s Brian Ruben, global real estate audit and assurance leader, and Kevin Richards, U.S. financial services industry leader, joined an in-person episode of the REIT Report podcast at the New York Stock Exchange on Oct. 8.

Speaking ahead of the third annual NYSE Deloitte Nareit REIT Board Member Forum, Ruben and Richards highlighted the critical role of boards today, focusing on capital allocation, risk management, and strategic planning amidst changing market conditions. They shared insights on governance, AI/technology, and leadership development to help boards navigate complex challenges.

Richards underscored that while capital is “very much available, it is selective.” He highlighted the essential role of REIT boards in advising on capital allocation strategies and noted that boards need to weigh several considerations in today's changing environment, including cost allocation, asset management, and partnership.

Meanwhile, Ruben advised against relying on broad labels for portfolio classification. He urged boards to focus on the specifics of each portfolio, looking closely at the drivers of demand and geographic concentration. 

Kurt Yinger, senior vice president at D.A .Davidson, joined the REIT Report podcast to review the timberland REIT sector, which he described as offering an “attractive blend of defensive and offensive” characteristics amid an uncertain macro backdrop.

“We like the timber REITs. It's been a frustrating one for investors, but I don't think we should just necessarily toss it aside because of some of the cyclical pressures that we see today,” Yinger said.

He pointed to downside protection and relative outperformance potential for the sector “in kind of a lackluster housing environment.” At the same time, lumber and wood products, he noted, are exiting a trough.

Chapters:
Lumber Profitability Turning 0:00
Show Intro and Guest 0:25
Industry Consolidation and Scale 0:46
More Consolidation Ahead 2:32
Timber Supply Demand Basics 2:55
Housing Rates and Recovery 5:15
Repair Remodel Demand Check 7:51
Climate Solutions and HBU 8:57
Closing the Valuation Gap 11:38
Commodity Versus Real Estate 14:34
Federal Forest Harvest Plans 15:40
Why Buy Timber REITs Now 17:57
Wrap Up and Subscribe 19:41

Lee Schalop, former managing director of Bank of America Securities and one of the REIT industry's most influential analysts in 2001, joined the REIT Report podcast to mark the 25th anniversary of the inclusion of REITs in S&P indices.

Schalop, working alongside Nareit, leading analysts, investors, and REIT executives, became a key voice lobbying for REIT inclusion in the S&P 500 25 years ago.

Their success in convincing the S&P Index Committee to add REITs into the indices played a crucial role in transforming publicly-traded real estate from a niche investment opportunity to a major force in the economy.

"Real estate is a vital part of the U.S. economy, and excluding it from indices meant investors missed critical insights," he notes.

Chapters:
00:00 REITs Join S&P Era
01:49 REIT Market in 2001
02:35 Why REITs Were Ignored
04:30 Dot Com and 9/11 Backdrop
04:59 Mutual Fund Misconception
06:51 Winning Over S&P
10:31 Allies and Strategy
13:47 The Decision Call
15:21 Investor and CEO Reactions
17:27 Liquidity and Valuation Boost
19:16 25 Years of Change
20:59 Surprises and Milestones
22:39 From Wall Street to Med
24:15 Biotech and Drug Approval
26:44 Alternate Universe Wrap

Noah Springer, president of Extra Space Storage Inc. (NYSE: EXR) and its next CEO, spoke to the REIT Report about leadership continuity, fundamentals, and how scale, data, and operational efficiency are crucial elements supporting the REIT’s performance.

Springer, who becomes CEO at the start of 2027, emphasized the significant role that mentorship has played in his career at Extra Space and how working with three different CEOs, including current CEO Joe Margolis, has provided him with a diverse education in leadership. Continuity is not about stagnation, he said, but rather about focusing on what works while pushing for innovation.

While the demand for storage remains steady, the supply environment is improving, he pointed out, creating a healthier backdrop for business operations. In the second quarter, same store revenue grew 2.4%. Springer attributed the gain to strong operational efficiency. He also highlighted that once the REIT’s customers are in the facility, vacate rates are historically low.

Chapters:
00:00 Extra Space Outlook
00:23 Meet Noah Springer
00:51 Mentorship And Continuity
02:49 Bench Strength Culture
03:14 Fundamentals And Guidance
05:14 Retention And Pricing
05:39 Acquisitions Capital Playbook
07:22 Third Party Platform Growth
08:22 What Makes Partnerships Work
09:31 Competitive Edge Scale Data
10:47 Tech Culture And AI
11:43 Fragmentation And Consolidation
12:24 Industry Changes Ahead
12:55 Closing Thoughts And Wrap

Gina Szymanski, chief investment officer at  AEW Capital Management’s global securities business, told the REIT Report that for long-term investors in the REIT market, “there is no better time in the cycle than now,” as historically low levels of supply across all sectors bolster prospects for growth and fundamentals.

“We actually are very bullish,” Szymanski said. “We are sitting at a trough in the cycle. When interest rates started to rise in 2022, it was really pencils down in terms of new development and it took a while for the supply pipelines to empty across the board. But now, really across all sectors, we're sitting at historically low levels of new supply. That will ultimately lead to more pricing power for landlords, and we are seeing green shoots of that,” she added.

Acknowledging that the spread between REIT implied cap rates and the 10-year Treasury has halved since the start of the year, Szymanski emphasized that REITs can still thrive if investors focus on growth sectors, which include senior housing, data centers, and retail.

Chapters:
00:00 Bullish REIT Snapshot
00:22 Meet the Host and Guest
00:43 What Changed Since January
02:28 Bond Yields and Valuation Cushion
03:23 High Growth Sector Picks
05:23 Is There Still Upside
06:02 Apartments and Office Discounts
08:08 Balance Sheets and Deal Activity
09:02 US Versus Global Allocation
09:57 Volatility as an Advantage
11:00 Cycle Trough and Closing Takeaways
12:12 Final Thanks and Subscribe

Patrick Wilson, portfolio manager on the real estate securities team at CenterSquare Investment Management, told the REIT Report that reasonable demand, pockets of strength, and very low supply on the horizon should amount to “pretty healthy” earnings growth for REITs in the next 12-24 months.

The combination of higher interest rates suppressing development for most property sectors with the exception of data centers, alongside solid balance sheets, creates “a really good scenario and outlook for REITs today,” Wilson said. “I really do think we're in an attractive point in the cycle right now for listed real estate.”

In many ways the current K-shaped economy is playing out in favor of the REITs that cater to higher-end consumers versus the broader commercial real estate market as a whole, Wilson noted. He also pointed to increased M&A activity as evidence that scale, balance sheet strength, and access to lower-cost capital are becoming more important in a higher-rate environment.

Content:
00:00 Why REITs Look Attractive
00:35 Welcome and Guest Intro
01:02 Macro Outlook Next 24 Months
05:35 M&A Surge Explained
07:50 Will Deals Keep Coming
08:50 Top Sector Picks Now
12:54 Data Center Moratorium Risks
16:42 Life Sciences and AI Rebound
24:23 Closing Takeaways

Dave Rodgers, managing director at Raymond James Equity Research, joined the REIT Report podcast to discuss the outlook for health care REITs, noting that the sector—and senior housing in particular—is one of the most attractive areas for investment across the REIT industry today.

A large and wealthy older generation, and limited supply, provide a “really good runway for strong organic growth” in senior housing, marked by rent growth and margin expansion, Rodgers said. Over the next decade, “we don't think it's a stretch to think that maybe this business can grow at 10% annually,” he added.

Senior housing occupancy nationwide is around 90% today, Rodgers pointed out. He noted that older, wealthy individuals considering senior housing options are more interested in the lifestyle component than ever before. “They really want to benefit from living in one of these facilities.” At the same time, enhanced technology is improving the resident experience and reducing labor intensity in operations.

Chapters: 
00:36 Healthcare REIT Breakdown
01:14 Senior Housing Demand Surge
02:42 How Senior Living Evolved
04:53 Mid Market Supply Question
06:12 Labor Costs And Margins
07:27 Skilled Nursing And Medical Office
09:29 Life Science Recovery Check
10:50 Where Deals Are Happening
13:25 Risks Next Two Years
15:12 Final Investment Takeaways