REIT stands for Real Estate Investment Trusts. The real estate industry is booming, which is great news for real estate investment trusts as they grow. Anyone looking for a career opportunity with a REIT can take advantage of the news that many jobs are available. How many jobs are available in real estate investment trusts? What types of positions are available in the REIT industry?
This guide will tell you how many jobs are available, how these real estate investment trusts work, and much more.
What are real estate investment trusts
In the United States, there are over 225 REITs with a combined market capitalization of over $1 trillion. A real estate investment trust (REIT) is a publicly traded public investment vehicle. Additionally, investors can even purchase REIT ETFs to spread their investments across many real estate asset classes.
A REIT owns and manages income-producing real estate and related income-producing assets. In addition, the REIT may own properties, including offices, hotels, resorts, etc. However, real estate purchased by the REIT is not intended for future resale. Instead, the property held by the REIT is for development. Then the property is used as part of the investment portfolio to generate income.
Investors can buy and sell these assets quickly and cheaply. REITs also have much better liquidity than traditional real estate investments. Listings for REITs are on the New York Stock Exchange, the US Stock Exchange and NASDAQ. Additionally, investors can gain indirect access to REITs through mutual funds.
Investing in REITs enables groups of investors to make large-scale real estate investments that otherwise would not be possible. Small real estate investors can access larger real estate investments by investing in a REIT.
As the REIT sector grows and diversifies, analysts predict that many more jobs will become available in the industry.
How do real estate investment trusts work?
In 1960, Congress created real estate investment trusts. The goal was to give everyone the opportunity to benefit from investing in income-producing real estate. Certainly, investing in a REIT is like investing in any other industry. Investors buy shares and REIT shareholders pay shareholders the majority of the income.
When Congress first created REITs, there were rules that REITs had to follow. All REITs must be modeled after mutual funds, treated by the Internal Revenue Code as a corporation, and largely owned by shareholders.
In addition, REITs must primarily hold or finance real estate and hold real estate with a long-term investment horizon.
The Internal Revenue Code states that at least 75% of the company’s revenue comes either from real estate rents, real estate interests, or from the sale of real estate assets. The company must have at least 75% of its assets in real estate and 95% of the company’s income must be passive.
Are REITs a good investment?
Anyone who wants to diversify their investment portfolio without increasing risk too much should consider investing in a REIT. There is always some risk because no investment is perfect, but there are some benefits to getting rich by investing in a real estate investment trust.
The operation of a REIT means that it does not pay corporation tax. Dividend stocks often face double taxation: at the corporate and personal level. The good news is that REITs are not taxed at the corporate level, which means they enjoy a significant tax advantage.
The REIT must pay 90% of taxable income to shareholders. Many REITs often have a dividend yield of over 5%, but the average stock has a yield of less than 2%. This makes investing in a REIT ideal for anyone looking for income or more to reinvest.
Real estate values tend to increase over time. As a result, many REITs can capitalize by selling valuable properties and using the capital elsewhere. Many REITs offer returns that far exceed the market through these strategies.
REITs are ideal for small investors
s small real estate investors can invest in a commercial real estate portfolio that would otherwise be inaccessible. Most people can’t buy an office tower or a mall themselves. Thanks to the creation of REITs by Congress, anyone can now invest in and profit from these types of buildings.
A solid financial plan means having a diversified investment portfolio. REITs work like a stock market investment, but instead of stocks, it’s real estate. Investment advisors recommend owning real estate in an investment portfolio, as real estate generally retains its value even during economic downturns. Investing in a REIT often means having a stable income.
If someone owns real estate, it may take a while to sell it. However, a REIT investment is easy to buy or sell with the click of a button. Having this level of liquidity makes the REIT an attractive proposition.
Real Estate Employment Statistics
According to the US Department of Labor, the need for property managers, real estate brokers and sales agents continues to grow. In 2022, the average salary in the real estate industry is $51,220 per year, with hundreds of thousands of people employed in the United States.
In the REIT sector, average salaries far exceed those of real estate brokers. The average real estate investment trust (REIT) analyst earns $108,164 per year as of September 2022, more than double the number of real estate brokers and sales agents. However, the salary range is usually between $76,495 and $145,071
There are 274,000 full-time employees employed by REITs. An estimated 2.6 million full-time jobs indirectly result from real estate investment trusts.
The good news for anyone looking to pursue a career in a REIT is that growth is on the way. This means plenty of job opportunities and the ability to demand a significantly higher salary than other parts of the real estate industry.
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Types of Jobs Available in Real Estate Investment Trusts
A wide range of jobs are available in the real estate investment trust (REIT) industry. To better understand this, here are the job descriptions of the main roles available.
Development is responsible for building new projects. Working in this role is ideal for anyone looking for project management work. In addition to developing new projects, this role involves working with others to fund development.
Development jobs in the REIT sector are highly sought after as they are well paid, challenging and highly respected.
Acquisition jobs with real estate investment trusts involve finding new investment opportunities. And these roles ensure that deals are done. Moreover, these roles are in REITs and are well paid. The job is strongly related to finance and is suitable for anyone with a degree or background in finance, marketing, trading or capital markets.
Property management roles
Property managers are responsible for overseeing the operation of a property – rentals, maintenance, collections, and whatever else is necessary.
There are no minimum requirements to become a property manager. Ideal candidates are those who can handle a variety of situations and have good project management skills.
Getting started as a property manager in a REIT is often a great opportunity. Indeed, when other roles become available within the organization, there is a good chance of career progression.
Asset management roles
Asset management is a job that ensures the operational and financial health of the portfolio of real estate investment funds. An asset manager should manage client assets in accordance with agreed investment objectives and preferences. Asset managers develop, organize and maintain client portfolios.
A good asset manager will need to be able to work with various other teams. Acquisitions, accounting, development and finance interact with asset managers to work together to deliver results. At the same time, they must ensure compliance with SEC, FPI and Sarbanes-Oxley regulations.
It’s not uncommon to start working in acquisitions or property management and then become an asset manager.
e residential or commercial properties. Alternatively, anyone with the skills should be able to land an asset management role immediately.
Investor Relations Roles
Investor Relations is responsible for coordinating and managing all communications with REIT shareholders. The role pays well and is ideal for anyone with a finance or accounting background.
The Investor Relations team will organize the annual meeting and meeting materials, including the annual report and proxy statement. And all of this must be done in accordance with SEC regulations.
Anyone with a background in accounting or finance would be a good candidate to apply for this position.
How many new jobs are there in real estate investment trusts?
Now, if you’re wondering how many jobs are available, data from LinkedIn shows that as of September 28, 2022, there are currently over 1,278 jobs within real estate investment trusts. It’s just a site and a great indicator that there are a lot of opportunities in the field.
The REIT industry is a rapidly growing sector. In addition to needing investors, there are many other supporting roles that need to be filled on a regular basis.
The real estate investment trust industry is already large and continues to grow. Working for a REIT means following strict reporting and regulatory protocols. Many jobs with REITs require the candidate to have a background in accounting or finance.
However, other roles are available that do not have these restrictions. Once you work in a REIT organization, it is possible to move on to other roles if one becomes available.
What are the two types of real estate investment trusts?
There are two types of REITs – stock REITs or mortgage REITs.
Equity REITs aspire to own a variety of property types. Commercial properties include offices, hotels, shopping malls and many more. The rent from these properties is the source of most of an equity REIT’s income.
The other type, a mortgage REIT, aims to finance residential and commercial properties. Most of their income comes from interest earned on their investments in mortgages or mortgage-backed securities.
Can you work for a REIT?
Yes! It is possible to work for a REIT. The highest paying real estate investment trust jobs listed above include working as an asset manager, property manager, or investor relations.
These are not the only roles available. Support staff are also always needed – HR, administrators and legal roles are some of the other jobs available in the REIT industry.
To work in a specific REIT role, candidates will need to have a background in finance, accounting, or real estate. Many roles will require the candidate to hold a relevant degree. Specific to REITs