REIT Capital Raising Trends: Navigating a Selective Market in 2025

In the U.S. commercial real estate landscape, capital raising is the engine that fuels REIT (Real Estate Investment Trust) growth. Whether for acquisitions, development pipelines, or balance sheet stability, access to equity and debt markets is critical. In 2025, REITs continue to demonstrate resilience in raising funds, though the strategies have shifted toward a more disciplined and selective approach.

Equity REITs Raised $4.85 Billion in Q2 2025

According to Seeking Alpha, U.S. equity REITs raised approximately $4.85 billion through at-the-market (ATM) offerings in the second quarter of 2025. ATMs are a flexible capital-raising tool used by publicly traded REITs to issue new shares directly into the market over time, rather than all at once through a traditional public offering.

While a significant figure, this represents a decline from the previous quarter, highlighting that investor appetite remains strong but targeted. REITs are carefully timing offerings to align with favorable market windows. 

Greater Reliance on Flexible Capital Raising Tools

The continued use of ATM programs underscores a broader trend: REITs are prioritizing flexibility and market responsiveness. Unlike traditional large-scale offerings, ATMs allow REITs to raise equity incrementally, minimizing dilution and reducing market risk. This reflects a more conservative approach to capital deployment in a higher interest rate environment.

Debt Markets Remain Cautious

Although the Federal Reserve has made progress on inflation, borrowing costs remain elevated compared to the last decade’s historically low-rate environment. Many REITs are extending debt maturities, refinancing where possible, and exercising caution with new leverage. Protecting credit ratings and maintaining liquidity buffers remain priorities, particularly for REITs in more vulnerable sectors.

Sector Divergence in Access to Capital

Investor sentiment is not evenly distributed. Sectors with durable demand drivers like data centers, industrial, and healthcare REITs continue to attract capital with relative ease. Conversely, office REITs face ongoing challenges, with investor confidence constrained by persistent vacancy rates and structural shifts in workplace demand.

Eve’s Hot Take

The 2025 capital raising environment can be best described as measured resilience. REITs are still raising billions and investors are rewarding sectors backed by strong fundamentals such as data centers, industrial, and healthcare. Flexible tools like ATM programs highlight the industry’s ability to adapt and strategically raise equity in this selective market. As REITs look to gain more market share one thing is certain: diversification and agility are fundamental for success. For investors with some creativity who are looking to steer clear of the competitive REIT environment, devalued office properties might be just the right investment where they can find a competitive advantage.

To learn how Eve Capital navigates these market dynamics and supports clients of all sizes in identifying the right investment strategies, connect with us today.