The proposal values Duke at $61.68 a share, a 29 percent premium to its closing price on May 9, according to a letter from Prologis CEO Hamid Moghadam.

With $10.8 billion in Canadian real estate assets, Blackstone is moving aggressively to become a bigger player in all property sectors.

Capital costs are rising, but fundamentals remain strong and real estate is also benefiting as a hedge against inflation.

Data this week are likely to show that U.S. consumer prices rose 8% from a year earlier in April.

Firms are footing the extra cost to drive demand for their deals and ensure they get them over the line.

Despite the drop, REITs are outperforming the broader stock market and seem positioned to weather current economic challenges.