Data Centers Are the Hot New REITs. Should You Invest $1,000?
REITs are staging a comeback this year, with data center REITs particularly hot.
Overview
Real estate investment trusts (REITs) have staged a comeback in 2026 after years of declining or moving sideways. And one category of REITs, data centers, is particularly hot right now.
But first, what are these investments, and how do they work? REITs are companies that finance or own, and often also manage, income-producing real estate. The properties they own can vary widely, from office and retail properties and residential real estate to healthcare and data center assets, among many other categories.
Details
Yet the entire REIT sector struggled in the aftermath of the COVID-19 pandemic due to trends such as work-from-home culture and depressed spending at brick-and-mortar retail outlets. Plus, the Federal Reserve's elevated interest rates, implemented after the pandemic to counter rising inflation, hurt REITs, many of which rely heavily on debt to expand.
Source
Originally published at www.fool.com.