How Many Jobs Are Available in Real Estate Investment Trusts

How Many Jobs Are Available in Real Estate Investment Trusts

It comes as no surprise that you are starting to wonder How many jobs are in real estate investment trusts. REIT organizations employ 308,000 people on a full-time basis. The real estate investment trust (REIT) industry has experienced significant growth over the past decade. This is largely because of favorable tax incentives and the ability for investors to get in on these trusts earlier in their life cycle than with traditional real estate investments. A REIT offers you indirect ownership of real estate by buying properties and leasing them to tenants. There is a wide range of REITs that offer different risk and reward profiles. Understanding how they work, as well as the pros and cons, can help you decide if a REIT is right for you. Here’s what you need to know about working for a REIT.

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1. Acquisitions


The first step in any real estate asset management cycle is the acquisition of properties. A REIT acquires properties primarily through two methods: buying from other investors, or from developers. When a REIT acquires a property from an existing investor, it’s a purchase. When a REIT acquires real estate from a developer, it’s an acquisition. Real estate acquisitions can occur in any market cycle. REITs will often acquire distressed properties in order to acquire them at a discount. In a rising real estate market, a REIT will acquire properties in a timely manner during the construction phase. This allows the REIT to lock in lower acquisition costs and higher rental rates over the life of the lease.

2. Real Estate Investor


A real estate investor is someone who purchases properties and holds them for the long term. These are often large-scale commercial investors who buy multiple properties and hold them for years at a time. Real estate investors often purchase properties for the sole purpose of generating cash flow from leases. A REIT is a type of publicly traded company that acquires properties for the sole purpose of leasing them to tenants. They buy properties in order to make money from rental income and don’t intend to hold onto these properties for the long term. A real estate investor may use a REIT to invest in a single property. A REIT may use a real estate investor to help finance a single property.

3. Asset Management


REITs manage a variety of different types of commercial real estate assets. These may include office buildings, hotels, warehouses, retail spaces, and apartment buildings. The level of risk associated with each real estate asset is measured by the capitalization rate. This is the net operating income of a property divided by the purchase price. The higher the capitalization rate, the riskier the investment. This is because the cash flow may not be enough to cover the debt used to purchase the property, as well as the ongoing expenses.

The riskiest types of assets held by REITs include hotels, apartment buildings, and office buildings. Retail properties tend to be less risky because they require less upfront capital. REITs also manage the asset lifecycle. This includes the acquisition, management, and disposition of properties. Each of these plays a role in the overall performance of the REIT. Asset management is critical to the success of a REIT. It includes management of the property, compliance with financial obligations, and tenant relations.

4. Property Manager


A REIT will hire a company that specializes in property management. This company will handle the day-to-day operations of each property. They will collect rent from tenants, pay the necessary expenses, and handle any repairs and maintenance. Most property managers operate as independent contractors. And they get paid a percentage of the rental income they collect. The property manager will also manage the insurance policy that covers the building and protects the REIT and its investors. The property manager is also involved in managing a tenant’s lease.

5. Property Developer


A property developer is someone who constructs new buildings as well as renovates existing buildings. When a REIT purchases an existing property, it may hire a property developer to help renovate the property. Renovations may include updating the amenities, upgrading the electrical and HVAC systems, or modernizing the interior design. When a REIT acquires a property from a developer, it may need to pay for some of the construction costs in order to meet the requirements of the lease. This may include upgraded landscaping and an upgraded facade.

6. Investor relations


Investor relations is the communication between a REIT and its investors. A REIT will produce regular communications about the portfolio of properties it owns and manages. This includes the current and projected rental income, the debt service coverage, as well as any issues that may affect the performance of the investment. These regular communications are designed to keep the investors informed of the current financial health of the properties. They also provide investors with an opportunity to ask questions, offer feedback, and discuss issues and concerns they’re currently experiencing with the tenants.

7. Leasing Consultant


When a REIT acquires a new property, it will hire a leasing consultant to help find tenants. The leasing consultant will submit offers to tenants and communicate with local brokers who specialize in leasing commercial properties. A leasing consultant will also help the REIT choose among the various offers received from potential tenants. The leasing consultant will help evaluate offers based on their experience with local markets and tenant populations. They will also consider how flexible each offer is when negotiating lease terms.

8. Real Estate Property Appraiser


A REIT will hire a professional appraiser to value each property it acquires. The appraiser will perform a physical inspection of the property, as well as review comparable properties in the same market. This will help the appraiser determine the fair market value of the property. They use this value to determine the amount of debt or equity required to acquire a property. They also use it to determine the amount of cash flow the property will generate.

9. Real Estate Attorney


A REIT will hire an attorney to review contracts and documents. This includes contracts with vendors and contractors who work on the properties. It also includes contracts with the brokers who represent the REIT when acquiring new properties. The REIT attorney will also help prepare the documents that are required when registering the offering with the Securities and Exchange Commission. This will include the offering memorandum, the risk factors, financial statements, and other documents that are required by the SEC.

10. REIT Analysts


The analysts at a REIT will analyze its performance and financial condition. They will monitor the current market conditions and forecast future trends that may affect the performance of the REIT. They use this information to help the management team make decisions on the future course of action for the company. These decisions may include acquiring new properties, disposing of current assets, or adjusting the capital requirements for new financing. The analysts will also review data from the tenants to see if they’re meeting their financial obligations. This includes paying their rent on time, as well as meeting any other financial obligations, such as repairs and maintenance.

How to get a job at a REIT


If you want to work for a REIT, the first step is to find the REITs in your area. This can be done by searching for real estate investment trusts in your state. You can also use an industry database, such as NCREIF, to find REITs by industry type and asset type. This will help you narrow down your search by the type of real estate assets a REIT manages. Once you’ve found the REITs in your area, you should check out their websites. Many REITs list the types of jobs they have available on their websites. If you don’t find what you’re looking for, you should contact the HR department and let them know you’re interested in working for them.

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