David Auerbach, Chief Investment Officer at Hoya Capital Real Estate, joins hosts Manus Clancy and Martha Coacher for a deep dive into the misunderstood world of REITs. Often dismissed as “boring” or overlooked next to market movers like Apple, Nvidia, or even crypto, REITs are in fact powering much of the CRE ecosystem. Auerbach explains why misconceptions, like REITs being purely interest rate sensitive, miss the bigger picture of tenant contracts, long-term income streams, and transparency that other real estate investors should watch.
The conversation spans REIT performance since the Fed’s rate-hiking cycle began in 2022 (underperforming the S&P by 50%), the surprising rebound in senior housing, the structural demand for rentals amid unaffordable home prices, and why data centers and towers now make up 25% of REIT indexes while office is just 4%. Auerbach also outlines the “graduating class” of REITs, from the Ivy-bound aristocrats to the troublemakers in the penalty box, and why active management matters for spotting warning signs.
Listeners will hear why Berkshire Hathaway’s quiet moves into REITs matter and which market signals Auerbach watches (hint: the 10-year Treasury vs. Fed Funds). Packed with insights, data, and forward-looking signals, this episode is essential listening for anyone navigating CRE investing in a volatile market.
00:55 Understanding REITs in CRE
04:14 Macro Shifts & REIT Resilience
07:44 Data Centers, Housing & Everyday Use
11:00 Spotting Opportunities in REIT Trends
16:45 Active Management Levers: Dividends & Leverage
28:26 Market Signals and Future Outlook
Have questions for the pod team? Send them to Podcast@LightBoxRE.com
