BPYU

REITs: The Landscape has Changed

The coronavirus has accelerated an enormous and previously slow-moving secular change in the commercial real estate industry. REIT investing isn’t what it used to be. Specifically, online shopping (retail), telecommuting (office), logistics (industrial), public safety (healthcare), the internet (data center) and zero-rate interest (mortgage) have dramatically shifted the relative attractiveness of various REIT business models and sub-industries. You can try to time the day-to-date REIT market volatility as if you were a professional trader (you’ll likely get smoked), or you can admit the vast new paradigm, and take the long view. This article explains our view on the evolved REIT reality and highlights three attractive “Strong Buy” REITs in the process.