3 Must-Have REITs for Your Black Friday Shopping Cart

The holiday rush is officially underway, with Thanksgiving leading into Black Friday, Cyber Monday and the weeks of festive shopping that follow. It is the stretch when retailers count on heightened foot traffic and stronger online activity to set the tone for year-end performance. With consumers eager for deals and convenience, this shopping wave also highlights where investors might find timely opportunities. 

This is where REITs step in as smart picks for today’s market backdrop. With rate-cut expectations improving and volatility easing, income-generating assets are drawing fresh attention. REITs not only offer steady cash flows but also benefit from long-term lease structures that help cushion near-term uncertainty. For investors seeking stability while still capturing sector-specific upside, REIT exposure can be a prudent move. This brings our attention to Digital Realty Trust, Inc. DLR, Federal Realty Investment Trust FRT and Terreno Realty Corporation TRNO, which are poised to excel. 

Take retail real estate, for instance, which has shown resilience. Retail-focused real estate continues to hold its ground as retailers refine their physical footprints. Properties in established trade areas are drawing interest from brands that value in-person engagement. With very little new supply entering the market, landlords benefit from stable occupancy and dependable rent collections. As shopping habits shift, strong retail centers are adapting and proving they can continue to perform well.

Industrial real estate remains a steady performer as businesses tighten their logistics strategies. Tenants are seeking spaces that can handle automation, quick fulfillment and efficient inventory management. Although a modest vacancy pickup is occurring as new projects finish, fewer developments are breaking ground. This gradual slowdown helps the sector reset and should support healthier fundamentals and more sustainable rent growth ahead.

The data center sector continues to surge as digital activity accelerates. Demand tied to cloud services, artificial intelligence and broader connectivity requirements is outpacing how quickly new capacity can be delivered. Limited power availability and lengthy construction timelines are adding pressure in several markets, strengthening rental economics. For investors, data center properties offer long-term growth potential, backed by essential digital infrastructure needs.

Stock Picks

To capitalize on this trend, we have handpicked three stocks for your Black Friday cart. Apart from having solid fundamentals, these better-ranked REITs have high chances of market outperformance over the next one to three months. These stocks are witnessing positive estimate revisions, too, reflecting analysts’ upbeat view.

Digital Realty remains a prudent buy given its accelerating growth, substantial backlog and leading position in AI-driven infrastructure demand. The company reported strong revenue and FFO momentum. Management highlighted broad demand across hyperscale, AI and enterprise customers.

With solid balance sheet progress, improving cash flow visibility, and continued success delivering power and capacity in constrained markets, DLR is well-positioned to benefit from structural digital infrastructure growth.

The Zacks Consensus Estimate for Digital Realty’s current-year FFO per share has improved 4 cents over the past 30 days to $7.35. This also calls for a 9.54% increase year over year. DLR currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Digital Realty Trust, Inc. Price, Consensus and EPS Surprise

Digital Realty Trust, Inc. price-consensus-eps-surprise-chart | Digital Realty Trust, Inc. Quote

Federal Realty offers a compelling investment case, thanks to its consistent leasing strength, high-quality open-air centers in affluent markets and proven ability to enhance assets through merchandising and redevelopment. Its strong third-quarter 2025 performance highlights record leasing activity, 28% cash rent spreads and comparable operating income up 4.4%. 

Federal Realty’s disciplined acquisition strategy, such as Annapolis Town Center, Town Center Crossing and Town Center Plaza in Leawood, KS, adds properties with clear upside. Moreover, a solid balance sheet and rising FFO guidance highlight durable forward growth. FRT’s long track record of value creation makes it a prudent long-term choice.  

The Zacks Consensus Estimate for Federal Realty’s current-year FFO per share has risen by 2 cents over the past 30 days to $7.23. This suggests a 6.8% increase year over year. FRT presently carries a Zacks Rank #2.

Federal Realty Investment Trust Price, Consensus and EPS Surprise

Federal Realty Investment Trust price-consensus-eps-surprise-chart | Federal Realty Investment Trust Quote

Terreno Realty’s strength lies in its focused strategy. It owns and operates industrial properties exclusively in six major coastal U.S. markets, specializing in infill, high-density locations that offer strong long-term fundamentals. 

Its portfolio, comprising around 20.2 million square feet, shows robust lease dynamics and pricing power, with cash rent growth of 17.2% reported in the third quarter of 2025. Such positioning, combined with disciplined asset selection and coastal-market exposure, makes Terreno Realty a compelling pick for investors seeking stable income and long-term appreciation.

The Zacks Consensus Estimate for Terreno Realty’s current-year FFO per share has improved 4.6% over the past 30 days to $2.71. This indicates a 12% jump year over year. TRNO currently has a Zacks Rank #2.

Terreno Realty Corporation Price, Consensus and EPS Surprise

Terreno Realty Corporation price-consensus-eps-surprise-chart | Terreno Realty Corporation Quote

Note: All EPS numbers presented in this write-up represent funds from operations (“FFO”) per share. FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research