The posts found here are dedicated to discussing REITS or Real Estate Investment Trusts. A REIT is an investment platform that owns, operates or finances real estate that generates revenue for investors. This way, commercial real estate professionals and newbie investors alike can dive into the commercial real estate market without having to directly buy or manage actual real estate.

How Does a REIT work? REITs typically own a diversified portfolio of properties that are leased out to tenants. Revenue is generated by way of collecting rent on those leases. The shareholders are then paid by the trust in the form of dividends. 

A REIT can become a worthwhile investment. According to Nareit REITs have a reliable track record and have performed well over the past 45 years, allowing for a proper return on investment. Most REITs are publicly traded like stocks which means that, unlike traditional real estate investments, they are remarkably liquid.

Properties owned by a REIT might include skyscrapers and office buildings as well as shopping malls and multi-family units such as apartment complexes. A REIT might even own a data center or a health facility. Warehouses and storage units are also common. Basically, any property that generates revenue can be acquired by a REIT, although the focus tends to stay on commercial real estate.

Are you invested in a REIT? Are you considering a REIT? Is a REIT right for you? If you’re looking for more information on “all things REIT” then this is where you want to be. 

These posts will discuss the benefits and risks of a REIT and how RIETs might be affected by economic cycles that could influence important factors when it comes to vacancy rates and rental income. If you’re ready to diversify your investment portfolio, a REIT is a great way to dip your toe into the world of commercial real estate investing.