Real estate investment trusts (REITs) are a powerful tool for investors to manage their investments and make money in the real estate market. With an increasing number of people interested in investing in real estate, there is a growing demand for professionals with expertise in REITs. In this article, we take a look at how many jobs are available in real estate investment trusts and what these positions entail.
Jobs in REITs
How many jobs are available in real estate investment trusts (REITs) that have become one of the fastest-growing asset classes in recent years? They are a popular investment vehicle for investors looking to reap the benefits of real estate without owning physical property. As a result, REITs have created multiple job opportunities across different sectors of the economy.
According to data from the National Association of Real Estate Investment Trusts (NAREIT), as of 2020, there were over 1 million jobs supported by REIT-owned properties and operations in the US alone. These jobs range from property managers, leasing agents, and maintenance technicians to corporate accountants, legal professionals, and marketing specialists.
Moreover, with more companies transitioning their real estate portfolios into REIT structures due to tax incentives and other benefits offered by this structure, it is likely that job opportunities within REITs will continue to grow at a steady pace. Overall, jobs within REITs span a broad spectrum of roles and skill sets that offer ample career opportunities for those interested in pursuing them.
History of REITs
One of the most popular investment vehicles in today’s real estate marketplace is Real Estate Investment Trusts or REITs. This modern-day financial innovation is no longer a new concept, with a history that dates back to the 1960s when Congress passed legislation allowing for their creation. Initially created as a way to make commercial real estate more accessible to individual investors, REITs have since become an attractive asset class that offers significant benefits such as diversification and liquidity.
The growth of REITs over the years has been impressive, with over 200 publicly traded REITs available in 2019 alone. This boom has had a positive impact on the job market, creating numerous employment opportunities across various fields such as finance, law, and accounting. With more than $1 trillion in assets under management (AUM), REITs are considered one of the fastest-growing investment classes globally, leading to increased demand for skilled professionals who can help manage these assets effectively. As this trend continues, it is likely that we will see even more job openings within this sector in the coming years.
Types of REITs
Real estate investment trusts, or REITs, are companies that own and operate income-generating real estate properties. These companies offer investors a way to invest in the real estate market without having to own physical property. REITs come in different types, each with its unique characteristics and investment opportunities.
The first type of REIT is equity REIT. These trusts own and operate income-producing properties such as apartments, shopping centers, office buildings, hotels, and warehouses. Equity REITs generate revenue through rental agreements with tenants who occupy their properties.
Another type of REIT is mortgage REITs which focuses on investing in mortgages rather than owning physical properties outright. Mortgage REITs earn revenue by earning interest on the mortgages they hold or by buying mortgage-backed securities.
Lastly, there are hybrid or diversified REITS that combine elements of both equity and mortgage-based investments. They may invest in a mix of properties while also owning mortgages on some of their assets.
As the demand for rental housing continues to grow across many markets globally, there has been an increase in job openings available within these trust structures across various professions from finance professionals to asset managers to operations personnel who manage these properties daily.
Benefits of Working in REITs
Real Estate Investment Trusts (REITs) are popular investment vehicle that owns, operates, and finance income-generating real estate properties. REITs offer numerous benefits for those who work in the industry. One such advantage is job security. With an increasing number of people moving to big cities and urban areas, the demand for commercial and residential spaces is on the rise. This trend has led to a growth in jobs within the REIT sector.
Working in REITs also offers higher earning potential than other industries. The industry offers competitive salaries and bonuses, along with opportunities for career advancement, which can lead to higher pay scales over time. Additionally, working in REITs provides exposure to different aspects of real estate investments such as asset management, property management, leasing operations, and financial analysis among others; all of which present unique learning opportunities.
Lastly, working in REITs presents an opportunity to contribute positively to society by investing in properties that create jobs or provide affordable housing options for low-income families. This social impact creates a sense of satisfaction and contributes positively towards one’s personal fulfillment while also making a positive impact on the communities around them.
Job Opportunities in REITs
Real Estate Investment Trusts (REITs) are an attractive investment option for those looking to diversify their portfolio. But REITs aren’t just a great investment opportunity; they offer plenty of job opportunities as well. According to the National Association of Real Estate Investment Trusts (NAREIT), there were 150,000 people employed by REITs as of 2019.
The job opportunities in REITs span across a variety of fields, including finance, property management, and marketing. Some notable positions include real estate analysts who analyze market trends for potential investments and asset managers who oversee the day-to-day operations of properties owned by the REIT. Marketing professionals are also in high demand in this industry as they help attract tenants and investors.
Overall, the job opportunities available within REITs are vast and varied. Those with experience or education in real estate or finance may find themselves particularly suited for these roles. As the industry continues to grow, so too will its employment opportunities.
Challenges Facing REIT Employees
Real estate investment trusts (REITs) are known to offer a diverse range of job opportunities in the real estate industry. However, REIT employees face various challenges that may affect their work performance and overall job satisfaction. One major challenge is the volatility of the real estate market, which can be affected by factors such as interest rates, economic conditions, and political instability.
Another challenge that REIT employees face is competition within the industry. As more companies enter the market, there is increased pressure to stay ahead of competitors through innovation and strategic decision-making. This can be particularly challenging for smaller REITs with limited resources.
Additionally, changes in regulations affecting tax laws or securities laws may also present challenges for REIT employees who must adapt to these changes quickly while ensuring compliance with new requirements. Ultimately, success in a career within a REIT requires flexibility and an ability to navigate through potentially complex situations while maintaining a positive attitude toward one’s work.
Conclusion: Real Estate Investment Trusts Jobs Outlook
In conclusion, the job outlook for real estate investment trusts (REITs) is positive due to their continued growth and expansion. As of 2020, there were approximately 912 REITs in the United States alone, with a market capitalization of over $1 trillion. This has led to an increased demand for skilled professionals in various areas such as finance, property management, and marketing.
According to a report by PwC, the employment rate in the commercial real estate sector is expected to grow by 1.4% annually through 2022. This indicates that there will be more job opportunities available for those interested in working within REITs. Furthermore, with advancements in technology and changing consumer preferences driving innovation within the industry, new roles are likely to emerge which will require specialized skills and training.
Overall, while certain factors such as economic downturns or changes in government policies may affect the job outlook for REITs temporarily, it is clear that this sector will continue to play a significant role in creating jobs and supporting economic growth.
