Blackstone Group's real estate fund makes a comeback, achieving its highest return in three years.

Blackstone's flagship real estate fund for retail investors achieved its best performance in three years in 2025, thanks to its investments in data centers. According to the company, the Blackstone Real Estate Investment Trust Fund had a total annual return of 8.1%, with assets exceeding $54 billion at the end of the year. This return rate was higher than the 2% in 2024, and a loss of 0.5% in 2023. Blackstone's acquisition of QTS, one of the world's largest data center operators, was a major contributing factor to last year's return rate. The value of QTS has significantly increased since it was acquired by Blackstone and two other funds in 2021, due to a surge in demand from artificial intelligence applications and other tech companies. The performance of Breit, in contrast to the end of 2022 and 2023, when a decline in property values and rising interest rates led to a large number of investors redeeming and forcing the fund to limit withdrawals. Investors transferred funds to safer investment options like money market funds, which offered unprecedented returns at the time. Since early 2024, Blackstone's fund has been able to meet all investor redemption requests. This improvement, combined with the fund's continuously improving performance in 2025, indicates a recovery in commercial real estate after years of being weighed down by high interest rates.