A version of this article first appeared in the CNBC Property Play newsletter with Diana Olick. Property Play covers new and evolving opportunities for the real estate investor, from individuals to venture capitalists, private equity funds, family offices, institutional investors and large public companies. Sign up to receive future editions, straight to your inbox. Barely four years after investors fled commercial real estate funds, due to fast-rising interest rates, some are now piling back in, as they rotate out of the once-hot private credit play . Investments in non-traded, publicly registered REITs went from $33.2 billion in 2022 to $5.7 billion in 2025, but gains in just the last few months are indicative of a turnaround. These REITs raised $593 million from investors in January, an increase from $467 million in December and $416 million in November, according to tracking from Stanger Investment Banking. Additional data from CoStar shows investments in non-traded REITs have seen gains over the third and fourth quarters of last year. Some expect that as more money comes out of private credit, it will end up in real estate. “We believe that will happen,” said Kevin Gannon, chairman and CEO of Stanger. “We’re starting to see signs of it in the fundraising starting to increase on the real estate side. It’s slower, but starting to increase. And the redemptions on the real estate side have subsided, and what’s going on now is there’s a rotation of capital.” When asked recently on CNBC’s “Squawk on the Street” if investment advisors might be taking clients out of Blackstone Private Credit (BCRED) and putting them into Blackstone Real Estate I …
