Jason Easterly, managing director, Denver regional leader at Stout, sat down for a video interview at Nareit's REITwise: 2025 Law, Accounting & Finance Conference® in San Antonio, Texas.
Easterly shared insights into the current state of the REIT capital markets as of early 2025. He noted that the year began slowly, with negative returns in January followed by some recovery in February. While sectors like multifamily and infrastructure funds have continued to perform well, Easterly noted a surprising dip in data center returns, which deviates from previous trends.
One of the more notable developments has been a shift toward private capital over traditional financing methods, he said. Despite being more expensive, private capital is increasingly appealing to real estate organizations seeking flexibility and partnership opportunities. Easterly found this trend noteworthy, as it signals changing preferences in capital sourcing.
Looking ahead, Easterly emphasized the ongoing struggle to complete deals in the post-COVID landscape. Transaction velocity remains low, with many investors still hesitant to deploy capital. He referenced the "dry powder" waiting on the sidelines, suggesting that once market confidence improves, deal activity may accelerate.