- The FTSE EPRA Nareit Developed Extended Index gained 3.6% in October and is up 6.1% in 2026. All three regions rose in the month.
- North America leads with a 13.7% year-to-date return, while Developed Asia and Developed Europe trail at -6.5% and -7.3%. Lodging, data centers and self-storage top the sector table.
- Rising Treasury yields hammered REITs in August and September. October’s pullback in the 10-year to 4.91% gave the group room to recover.
Global listed real estate rebounded 3.6% in October, led by North America, according to Nareit’s monthly market commentary. The FTSE EPRA Nareit Developed Extended Index is now up 6.1% for 2026.
Broader global equities still lead for the year, up 11.2% per the FTSE Global All Cap, though real estate outran them in October.
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North America Pulls Ahead
North America gained 3.2% in October and is up 13.7% year to date. Developed Europe rose 1.5% in the month and Developed Asia 0.6%.
Year to date, those two regions are still in the red, at -7.3% and -6.5%.
Europe’s only positive sector this year is industrial, up 5.5%. Residential (-24.5%), lodging (-20.3%) and self-storage (-13.6%) have been the biggest drags there.
Yields Ease the Pressure
Rising bond yields weighed on REITs in August and September. The 10-year Treasury yield started late July below 4.60%, reached 5.27% by September’s close and touched 5.31% in early October, a multi-decade high.
It then pulled back to 4.91% by month-end. Nareit says the retreat bolstered a Q4 recovery worldwide.
Lodging and Data Centers Lead
Lodging and resorts are the best-performing sector this year, up 38.7% after a 10.9% October. Data centers are next with 26.2%, then self-storage with 23.1%.
In North America, the spread is wider. Lodging has returned 55.1%, data centers 30.5%, self-storage 26.1% and health care 19.0%.
Laggards include timberland (-10.5%), industrial/office mixed (-9.7%) and residential (-6.8%) globally. In North America, industrial/office mixed is down 11.6% and residential 1.9%.
Telecommunications surged 19.3% in October and now shows a 6.7% gain for 2026. In Developed Asia, data centers fell another 24.0% in October and are down 27.8% for the year.
Zoom Out
The lodging run shows up in operator results. Sunstone Hotel Investors raised its outlook after Q3 RevPAR across its 13 hotels climbed 11.4% to $235.22.
Why It Matters
Public markets are pricing in a split. Hotels and data centers are winning, while residential and industrial/office mixed names lag.
That sits oddly beside hotel owners and operators, who are feeling the September rate hike in their costs, as CoStar reported from The Lodging Conference.
What’s Next
The 10-year is the swing factor. Nareit’s read is that the retreat from 5.31% supports a stronger finish, but another yield spike would put the October rebound at risk.
