REITs Shift To Diversifying Their Portfolios
Real estate investment trusts are revisiting their investment strategies on the heels of the pandemic as they explore which sectors were temporarily impacted, and which were permanently changed.
While most REITs focus on commercial real estate, many that used to specialize in offices are now branching into the coworking industry. Additionally, those who invested into multifamily are looking into industrial.
“The biggest change is portfolio diversification,” said Brian Sutherland, VP of commercial at Yardi. “Our solutions cross all asset classes, giving us a unique breadth of perspective into the various sectors of real estate.”
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Sutherland added that the main motivation behind this shift is growth, but trying to achieve this growth was difficult during the pandemic. However, it is now happening at an extremely fast pace.
“That trend in some capacity has been going on for a while, with the live, work, play and stay centers,” said Sutherland. “We will see more of that.”
REITs have also been exploring mix-use properties that feature a variety of properties under one roof. For instance, office and apartment towers that feature retail in the bottom floor or coworking spaces have become increasingly popular.
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