### Active Fund Managers Shift Allocations to Digital and Healthcare Real Estate
Data centers and healthcare real estate saw an increase in their share of actively managed real estate investment funds’ assets under management, while industrial and retail properties experienced declines. According to Nareit, active managers continued reallocating investments toward the digital and healthcare sectors and away from commerce-related sectors in the fourth quarter of 2024.
Telecommunications and data centers were the most overweight sectors relative to their index weights, with investments reaching 123% and 120% of their index shares, respectively. Healthcare saw the largest year-over-year increase, climbing to the second-highest absolute allocation at 14.6% in Q4.
Residential real estate remains the most heavily invested property sector, accounting for 16.7% of total allocations. Retail and telecommunications tied for third place at 13.4%, closely followed by data centers at 13.1%. At the lower end of the allocation spectrum were office and lodging properties, according to Nareit.
