Becoming a real estate agent or mortgage broker isn’t the only way to join the real estate industry. Another career path is working for a real estate investment trust.
A real estate investment trust, or REIT, is a company that owns a portfolio of real estate that may include hotels, medical facilities, data centers, warehouses, shopping malls and apartment complexes. Income investors often buy into REITs because they distribute a minimum of 90% of their taxable income to shareholders as dividends. Investors also like REITs because they offer a way to invest in real estate without directly buying and managing properties.
Here are the perks and challenges of working for a REIT, the types of careers in this field and tips to help you succeed.
Are Real Estate Investment Trusts a Good Career Path?
Working for a real estate investment trust can be a great career path, depending on your goals. One of the main advantages of working for a REIT is the diversity of roles available, according to Frank Cartwright, co-founder of property investment firm Yield Investing. “You can find a broad range of career paths in this field, from property management and finance to legal and marketing,” he said in an email.
On the flip side, he noted that fluctuations in the real estate market can impact your job security or growth opportunities at REITs. “Also, even though the work can be rewarding, it might not provide the same sense of ownership or direct involvement in property development that other real estate careers offer,” he said.
Types of Careers in Real Estate Investment Trusts
REITs offer a variety of roles involving many different functions. Here are some jobs and what they entail:
— REIT analyst. This professional analyzes real estate investments to determine if they’re a good fit for the REIT portfolio.
— Investor relations manager. An investor relations manager communicates with investors about the REIT’s performance and strategy.
— Portfolio manager. This worker oversees a portfolio of real estate assets to maximize investor returns.
— Marketing specialist. A person in this role creates marketing strategies and promotional materials to attract investors.
— Financial analyst. This professional crafts financial models and evaluates the financial health of the trust.
— Tax manager. These specialists manage tax strategy and compliance for the REIT.
— Acquisition specialist. In this role, professionals identify and secure new properties to add to a REIT’s portfolio.
[SEE: 8 Best Jobs in Finance.]
The Best Real Estate Companies to Work For
Choosing the right company to work for can make all the difference when you’re starting out in the REIT field. Here are some of the best real estate companies to work for.
AIR Communities
AIR Communities is a small real estate company based in Denver that’s known for its quality of pay and professional development.
Essex Property Trust
Essex Property Trust Inc. is a West Coast-based REIT that develops and manages apartment buildings in supply-constrained markets. The company, noted for its professional development opportunities and supportive work environment, has a portfolio of properties in California and the Seattle area that includes both residential apartments and commercial spaces designed for retail.
Camden Property Trust
Camden Property Trust is a publicly traded real estate investment trust that invests in apartments throughout the U.S.. It was founded in 1993 and is headquartered in Houston. The company employs around 1,640 people. Camden Property Trust is recognized for fostering a safe work environment where employees feel appreciated for their contributions.
BXP
Founded in 1970, BXP is a fully integrated real estate company, organized as a real estate investment trust. It develops, manages, acquires and owns a portfolio of primarily office properties concentrated in five markets: Boston, Los Angeles, New York, San Francisco and the District of Columbia. BXP is known for its competitive pay, excellent benefits and financial stability.
Lincoln Property Company
Founded in 1965, Lincoln Property Company specializes in commercial real estate services and investment, with expertise in sectors including retail, data centers, life sciences and health care. The company gets high marks for its work environment.
[Workers Weigh in on What Makes a Great Company to Work For]
Tips for Pursuing a Career in Real Estate Investment Trusts
If you’re interested in pursuing a career in real estate investment trusts, you may find these tips helpful.
Understand the Industry
The U.S. housing market can be highly volatile. “It can be impacted by interest rates, economic downturns and changing demographics,” wrote Gonzalo Guillen, CEO of the recruitment company HR Exchange, in an email. So if you’re considering joining a REIT, he suggests learning about these cycles and how they affect property values, rental yields and investment returns. “Knowing this will position you as a more informed candidate and help you navigate potential challenges in the industry,” he added.
Develop an Expertise
Specializing in a real estate sector can set you apart in this field, Guillen said. “Real estate investment trusts cover various sectors such as residential, commercial, industrial and specialized areas like health care or data centers. It can be beneficial to focus on a niche within the REIT space to differentiate yourself,” he said.
For example, specializing in a growing sector like sustainable real estate investments could give you an edge. “By becoming an expert in a specific type of real estate, you’ll provide more value to a REIT and position yourself for more advanced roles,” Guillen said.
Build a Network in Finance and Real Estate
To find job opportunities in the REIT industry and stay informed about the latest market trends, Guillen suggests attending industry events, joining real estate investment associations and connecting with professionals in the real estate and finance sectors.
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Is Working for a Real Estate Investment Trust a Good Career Path? originally appeared on usnews.com
