REIT IPOs Dwindle Amid Private Market Shift

REIT IPOs Hit Historic Lows

Initial public offerings for REITs have reached multi-decade lows in the US, reports Bisnow. After a complete pause in 2022—the first such instance in 21 years—there was no activity in 2023 and only one REIT IPO in 2025. Despite falling interest rates and improved real estate returns, Nareit data shows that companies continue to opt for private market solutions instead of going public.

Private Capital Drives the Market

Ample private capital, including $880B in available US-based private equity funds, has shifted the capital-raising landscape. Real estate owners increasingly see private channels as preferable to public listings due to lower volatility and regulatory burdens. Family offices and high net worth investors are also moving capital directly into commercial real estate, reducing the need for public REITs.

M&A Activity Surges

Mergers and acquisitions now vastly outpace REIT IPOs. Notable public-to-private transactions include Plymouth Industrial REIT, Sotherly Hotels, and Alexander & Baldwin. The ongoing accessibility of private financing and strategic acquisitions suggest that further M&A—including take-private deals—will keep REIT IPOs rare in the near future. Recent capital-raising trends indicate that even amid sluggish M&A volumes, REITs continue to attract substantial investment, underscoring the market’s preference for scale and private deal structures.

Sector Outlook Remains Selective

While niche asset classes like data centers briefly drew public market interest, such as the Fermi America IPO, most major players have been acquired or remain private. Only Digital Realty Trust and Equinix persist as pure-play public data center REITs. Industry insiders emphasize that new REIT IPOs will occur only if companies offer unique scale and differentiation—otherwise, capital is likely to stay private.