What to know how many jobs are available in real estate investment trusts? Learn all you need to know in this article.
In today’s dynamic economic landscape, real estate investment trusts (REITs) have emerged as a popular avenue for individuals and institutional investors alike to invest in real estate without owning and managing properties outright. As these investment vehicles gain prominence, a critical question arises: how many jobs are available within the realm of real estate investment trusts?
Consider a job in the real estate investment trust (REIT) sector if you’re interested in pursuing a career in investing in real estate. Helping customers acquire and maximize their real estate assets involves a wide variety of related tasks with various specializations. You can decide whether to follow this career path by finding out more about the many work opportunities in the REIT sector.
The following article discusses real estate investment trusts, the number of employment in this sector, and offers particular career opportunities. It delves into the diverse array of roles that contribute to the functioning of REITs and the opportunities they offer in the employment landscape.
Real Estate Investment Trusts, or REITs, are investment vehicles that pool funds from multiple investors to invest in a diversified portfolio of real estate properties. The appeal of REITs lies in their potential for steady income, capital appreciation, and portfolio diversification. However, the operations of REITs require a multifaceted team of professionals with specialized skills.
What are real estate investment trusts?
Real estate investment trusts concentrate on purchasing or financing properties that provide income for a portfolio. Investors in a portfolio can make investments in a variety of real estate assets without really owning them. These portfolios enable investors to spread their money among numerous real estate assets and maximize their capacity for income generation. The many kinds of real estate investment trusts to take into account are listed below:
Equity: Equity Hotels, apartment complexes, and other types of structures with high rental earnings are frequently the focus of REITs.
Mortgage: Since they own the mortgages on the properties, mortgage REITs make money from the interest paid on the loans.
Hybrid: By combining equity and mortgage operations, hybrid REITs generate revenue.
Before diving into the employment opportunities within REITs, it’s important to grasp the fundamentals of these entities. REITs own, operate, or finance income-generating real estate across various sectors such as residential, commercial, and industrial properties. They are required by law to distribute a significant portion of their earnings as dividends to shareholders.
More than 225 REITs with a total market value of more than $1 trillion operate in the US. A public investment vehicle listed on a stock exchange is a real estate investment trust (REIT). Investors can also purchase REIT ETFs to diversify their holdings across a variety of real estate asset types.
A REIT owns and manages income-producing real estate and associated assets. The REIT could also be the owner of a variety of structures, including as office buildings, hotels, resorts, and more. The REIT does not intend to resell the property it purchases, though. The REIT’s property is really for development. The property is then included in the investment portfolio to provide revenue.
These assets may be swiftly and cheaply bought and sold by investors. Additionally, REITs have far more liquidity than conventional real estate investments. The NASDAQ, American Stock Exchange, and New York Stock Exchange all list REITs. Additionally, through mutual funds, investors might have indirect access to REITs.
In contrast to what would otherwise be feasible, investing in REITs enables groups of investors to make large-scale real estate investments. By investing in a REIT, smaller real estate investors can have access to larger real estate assets.
Analysts expect that as the REIT sector expands and diversifies, a large number of new employment will be created.
Are REITs a Good Investment?
Anyone interested in diversifying their financial portfolio without significantly raising risk should think about buying a REIT. Even though no investment is risk-free, there are advantages to investing in a real estate investment trust in terms of increasing wealth.
A REIT doesn’t pay corporate tax because of the way it operates. Double taxation on dividend stocks frequently occurs at both the corporate and individual levels. The good news is that REITs do not pay corporation taxes, giving them a significant tax benefit.
90% of REIT’s taxable income must be distributed to investors. While the typical stock yields less than 2%, several REITs frequently have dividend yields of above 5%. Anyone seeking income or more for reinvestment might consider investing in a REIT because of this.
Values of real estate typically increase with time. Because of this, several REITs may profit by selling valued assets and investing the money elsewhere. Thanks to these tactics, many REITs offer returns that considerably outpace the market.
REITs are Ideal for Smaller Investors
A commercial real estate portfolio that would otherwise be beyond of reach is now available to small real estate investors. Most people are unable to independently own a retail mall or office building. Anyone may now invest in these kinds of properties and benefit from obtaining a return on their investment thanks to the formation of REITs by Congress.
A diversified investment portfolio is essential to a smart financial strategy. Similar to stock market investing, REITs use real estate instead of securities. Real estate typically maintains its value even during economic downturns, hence financial gurus advise including real estate ownership in a portfolio of investments. Having a reliable income is frequently required to invest in a REIT.
Real estate can be difficult to sell for owners. A REIT investment, on the other hand, is simple to purchase or sell with the press of a button. This degree of liquidity makes REIT an appealing investment.
Real Estate Industry Job Statistics
The need for property managers, real estate brokers, and sales agents is continuing to rise, according to the US Department of Labor. In the US, the real estate sector will employ hundreds of thousands of people in 2023, paying an average salary of $51,220.
Real estate brokers make far less money on average than in the REIT industry. As of August 2023, the typical Real Estate Investment Trust (REIT) analyst made $108,164 year, which is more than double the amount earned by real estate brokers and salespeople. The wage range, however, is typically between $76,495 and $145,071.
There are 274,000 full-time employees working for REIT companies. Real estate investment trusts indirectly provide 2.6 million full-time employment, according to estimates.
Growth is taking place, which is wonderful news for anyone looking to work for a REIT organization. As a result, there will be a lot of job possibilities and the potential to earn substantially more money than in other areas of the real estate sector.
How many jobs are available in real estate investment trusts?
How many jobs are there in real estate investment trusts, if you are thinking about this career path? Many individuals are employed in the real estate sector in a variety of positions. According to the BLS, there will be 1.855 million people working in the real estate sector as of February 2023. More persons may be employed in some occupations than others. As an illustration, there will be around 144,000 real estate sales agents and 44,000 real estate brokers in 2021.
According to some projections, the REIT sector employs around 326,000 people, while REITs themselves indirectly support 3.4 million employment. You may anticipate that there are 1000–2000 positions opening in the industry at any one moment, depending on your area and the state of the market. You may check the number of job openings for a particular position in the real estate investment trust sector to see whether it is in great demand to assist improve your chances of landing a job.
Job options in REIT
Depending on your skills and interests, you may want to have a look at a variety of opportunities in the real estate investment trust industry, such as:
1. REIT analyst
National average salary: $67,737 per year
Primary duties: To give up-to-date information, REIT analysts evaluate the properties in a real estate investment trust portfolio. To assist portfolio holders in having correct information about income, loan amounts, and property valuations in their portfolio, they may, for example, do market research, locate financial statements, and prepare underwriting of real estate holdings. In order to give thorough information, they may also carry out inspections of various properties, including collecting pictures and making maps. These analysts could also be in charge of managing the legal paperwork associated with certain real estate deals.
2. Real estate property appraiser
National average salary: $68,319 per year
Primary duties: To determine a property’s worth, real estate appraisers inspect numerous properties. These assessments are utilized when buying and selling homes and may be quite helpful for a real estate investment. The job of a property appraiser can assist in ensuring that properties are acquired at a fair price. These appraisers can also assist identify problematic or dangerous sections of the property and generate information regarding tax assessments.
3. Financial analyst
National average salary: $72,148 per year
Primary duties: Financial analysis and advice may be given to customers by a financial analyst who works in the real estate investment trust sector. They may also assist clients with the purchase of real estate. They might look into houses that their clients are interested in and write up reports on their evaluations. They could visit several properties to speak with investors to ascertain whether the property can aid in achieving their portfolio objectives. The financial analyst can assist the customer with completing the necessary papers if they decide to buy a home.
4. Investor relations manager
National average salary: $82,762 per year
Primary duties: Managers of investor relations serve as a point of contact between a firm and its shareholders to aid with communication, information exchange, and problem-solving. The primary objective of this position is to assist investors in making knowledgeable investing decisions. They frequently compile and produce numerous papers, such as financial statements, equity statements, and details about a company’s activities and finances, to communicate information.
5. Portfolio manager
National average salary: $86,291 per year
Primary duties: In the REIT industry, portfolio managers examine assets and portfolios to calculate return on investment (ROI) and assist their customers in leveraging properties for optimal profits. To calculate their anticipated growth, they evaluate the properties in a portfolio. Additionally, they could evaluate different risks in the portfolio and offer suggestions for reducing the drawbacks. In accordance with their position, they could also assist customers with asset allocation. They could also offer advice about whether or not to sell particular properties.
Types of properties in a REIT portfolio
Following is a list of homes that are frequently utilized for this kind of investment:
- commercial buildings
- residential buildings
- hotels
- shopping centers
- cell towers
Is real estate investment trusts a good career path?
You may have multiple opportunities to progress in this profession if you’re interested in seeking a position there. If you choose to concentrate on the land acquisition component of this profession, for instance, you can begin in an entry-level position as a land analyst, advance to a mid-level position as an asset manager, and eventually be eligible for a senior-level position, such as division manager or regional manager. In contrast, if you want to concentrate on finance, you can start out as a financial analyst, advance to a financial management position, and then go for a senior-level position as an investment director or director of finance.
Key Players in REIT Management
Property Acquisition Specialists
These professionals are responsible for identifying and assessing potential real estate properties for acquisition. They conduct market research, analyze property values, and negotiate deals to expand the REIT’s property portfolio.
Asset Managers
Asset managers oversee the performance of the properties within the REIT’s portfolio. They strategize to enhance property value, manage tenant relationships, and optimize overall returns for investors.
Property Managers
Property managers handle day-to-day operations of individual properties. They ensure properties are well-maintained, handle tenant concerns, and collect rents, contributing to the overall stability of the REIT.
Financial Analysts
Financial analysts play a crucial role in evaluating investment opportunities, assessing risks, and providing insights into market trends. They aid in making informed investment decisions.
Operational Support
Legal and Compliance Professionals
Given the regulatory nature of REITs, legal and compliance experts ensure that the organization adheres to relevant laws and regulations, reducing legal risks.
Marketing and Investor Relations Specialists
These professionals promote the REIT’s offerings to potential investors, maintain investor relations, and provide essential communication to shareholders about the performance of the REIT.
Accounting and Finance Experts
Accounting professionals manage financial records, prepare reports, and ensure accurate financial statements. Their role is pivotal in maintaining transparency and financial integrity.
External Services
Real Estate Brokers and Agents
REITs often collaborate with real estate brokers and agents to identify properties for acquisition, negotiate deals, and manage property transactions.
Property Appraisers
Property appraisers assess the value of properties, helping REITs determine fair prices for acquisitions and monitor the value of their existing holdings.
Construction and Maintenance Teams
Professionals in construction and maintenance ensure that properties are well-maintained and that necessary renovations or repairs are carried out promptly.
The Growth of REITs: More Jobs on the Horizon
As the popularity of REITs continues to rise, the demand for skilled professionals in various domains within the real estate sector is expected to increase. This growth extends not only to investment-related roles but also to the entire ecosystem supporting REIT operations.
Education and Skill Requirements
A career in the REIT industry often requires a combination of educational qualifications and specialized skills. Many roles demand knowledge of real estate markets, finance, legal regulations, and effective communication.
Challenges and Opportunities in REIT Careers
Working in the REIT sector presents unique challenges, including navigating regulatory complexities and adapting to market fluctuations. However, the sector also offers significant opportunities for growth, learning, and building a rewarding career.
Conclusion
Real Estate Investment Trusts have transformed the way individuals invest in real estate. From property acquisition specialists to financial analysts and legal experts, the range of employment opportunities within REITs is vast and diverse. As the market for REITs expands, so too will the demand for skilled professionals who can contribute to the success of these investment vehicles.
FAQs
What is a REIT?
A Real Estate Investment Trust is a company that owns, operates, or finances income-generating real estate properties.
How can I pursue a career in the REIT industry?
To pursue a career in the REIT industry, consider gaining relevant education and experience in areas such as real estate, finance, or law.
What roles are available for finance professionals in REITs?
Finance professionals in REITs can take on roles such as financial analysts, asset managers, or accounting experts.
Are there growth opportunities in REIT careers?
Yes, as the popularity of REITs grows, there will be increasing opportunities for career advancement and specialization.
What makes REITs an attractive investment?
REITs offer the potential for regular dividends, portfolio diversification, and exposure to the real estate market without direct property ownership.
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