Uncertainty continued to shape the first quarter, magnified by changing government and trade policies. Of note amidst this landscape is the cap rate expansion in the Data Center sector, largely a reaction to a few newsworthy events in the sector, such as the DeepSeek announcement. While the impact of increased tariffs remains to be seen, vacancy rates have stayed low and Data Center REITs continue to sign new leases, indicating that fundamentals remain strong for now.
Our Q1 2025 REIT Cap Rate Perspective Summary Report offers more detailed insight into this sector, as well as our perspective across the REIT market.
