REITs Hold Their Own Vs. Bonds

"If a dollar of cash flow is really worth more (today) ... then multiples have to go up significantly as well," Rush says. The real question remains, however: "Is real estate repricing going to be temporary or is it going to stick?"

The other reason REITs continue to perform well is that long-term interest rates, though rising, are still low historically. Many also believe long-term rates will not shoot up dramatically this year.

"If I'm wrong and if rates go up say another 50 to 75 basis points, I think it's very adverse for REITs," Rush says.

But until then, look for the REIT train to continue rolling.

"Look at the last 12 years," says Wood. "It's incredible to me what is happening in terms of the maturation of our business ... The public investment community in terms of REITs is broadening significantly."

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