Do you intend to begin a career in real estate investment trusts? If so, consider how many job openings there are at the REIT. What number of employment opportunities exist in real estate investment trusts?
In addition, According to the U.S. Bureau of Labor Statistics, Real Estate Investment Trusts, the financial services sector generated 16,000 new positions in August 2021, ranking it as the fifth-best industry for employment possibilities.
In the real estate investment trust, there are 326 000 positions available. Additionally, the United States offers around 3.4 million indirectly related occupations. Demand has progressively increased in recent years and is expected to climb.
In addition, this post will discuss some of the highest-paying jobs in real estate investment. But first, let’s learn about REITs—what they are, why we need them, and how to invest in them.
But it’s a sizable industry with a wide range of jobs. Furthermore, should you work as a trader, financial advisor, or in another capacity? Working for a real estate investment trust is a choice you should consider, especially considering the demand for real estate during the COVID-19 epidemic.
A Real Estate Investment Trust: What Is It?
A business that owns either commercial or residential real estate is known as a REIT (real estate investment trust). Long-term leases allow the properties in the REIT(real estate investment trust) to provide income and relative stability, which allows its investors to profit from real estate market growth without physically purchasing real estate.
Real estate investment trusts come in various shapes and sizes, Additionally, those for office, industrial, retail, lodging/resort, residential, timberland, health care, self-storage, infrastructure, data centers, diversified or combination, specialty, and mortgage.
Real estate investment trusts (REITs) are trusts, companies, or organizations that own, manage, and finance investments in income-producing real estate, such as office buildings, hotels, parks, and retail centers.
It is a kind of security that enables investors to combine their funds to buy real estate assets overseen by experts. It is a kind of real estate investment that is passive.
In addition, a great strategy to create income and long-term wealth are REIT(real estate investment trust) investments. As the value of the underlying real estate assets rises, so does the REIT shares, which may be sold publicly or privately on significant exchanges.
What Is the Process?
Congress created real estate investment trusts in 1960. Investing in real estate that generates income was intended to be profitable for everyone. Therefore, A REIT(real estate investment trust) is comparable to investing in other sectors of the economy.
When purchasing real estate projects to rent out or sell, a REIT pools funds from institutions and private persons. Without owning or managing the property, this scheme’s unit holders will profit from renting and selling.
Additionally, REITs can hold a variety of assets:
- Housing complexes.
- Healthcare facilities.
- Structures for offices.
- self-storage spaces
- Retail centers include places like malls.
In addition, the company derives 75% of its income from real estate sales, interest, or rentals under the Internal Revenue Code. Therefore, about 95% of the company’s income should be passive, and 75% of its assets should be real estate.
What Makes REITs(real estate investment trusts) Popular?
One estimate puts the number of Americans who own REIT equities at 145 million. Most people’s exposure to real estate investment trusts comes through their 401(k) or another retirement plan, which their employer sponsors. Consumers may benefit from REITs in many ways, including dividend yields, partial independence from the S&P 500’s performance, simple liquidity, and favorable tax circumstances.
Jobs at Real Estate Investment Trusts in Number
A REIT employed over 274,000 professionals full-time in 2019. More than 1,000 vacant roles may be found now on LinkedIn, and more than 3,000 REIT jobs can be found on Indeed.com, according to a simple search.
The many job categories
From the early conception of a real estate project through property maintenance and investor relations, a REIT is in charge of every facet of it. Thus, there is room for project managers, agents, and other professionals. Employees of a REIT need to be sure of its performance on a larger scale. Because of this, the trust’s assets and real estate portfolio are managed by specialists.
Various REIT Funds
While some REITs may invest in various real estate assets, most concentrate on a particular property type or geographic area. REITs may be divided into several categories depending on their ownership structure, the sort of real estate they own or finance, or how they make money. In addition, Equity REITs and mortgage REITs are the two most prevalent forms of REITs.
They are paid rent by tenants who have signed long-term contracts. As a result, a top firm in a city with little to no development is significantly less lucrative to invest in than a business in a rising city.
Long-term lease terms, the prevalence of net leases, and increased e-commerce demand where the tenant pays the operating costs are the key benefits of industrial REITs(real estate investment trusts).
- Health Care
Nursing homes, hospitals, and assisted living facilities are all included in health care REITs. Public policy changes may significantly impact the healthcare industry, making them especially unpredictable. National Health Investors Inc. and Care Trust REIT(real estate investment trust) (CTRE) (NHI) are examples.
- Resorts and Hotels
Companies specializing in acquiring, developing, leasing, and managing hotel and resort properties are included in this subcategory. These businesses’ overgrowth sharply rises with the expansion of the economy.
A stock to be considered diversified, a REIT must operate in at least two distinct property types, such as residential and commercial. The category’s obvious advantage is the opportunity to diversify one’s assets across several real estate asset types. Examples include Vornado Realty Trust and W.P. Carey (WPC) (VNO).
- Equity REITs:
Most REITs fall under equity REITs, traded on significant stock markets.
Rent payments and property sales are how they make money. Due to their high dividend payouts and potential for capital growth, equity REITs(real estate investment trusts) are desirable investments for income-seeking investors.
Office REITs, retail REITs, residential REITs, and industrial REITs are the subcategories under which equity REITs are categorized.
Rent payments from tenants are how retail REITs make their money. Therefore, a retail REIT would only make money or profit if the tenants default on their rent payments for whatever reason. They could have to find a new renter as a consequence. Therefore, before investing in a retail estate endeavor, it is essential to study the retail industry properly. Investing in a domain with a high income and less debt is lucrative.
These are real estate investment trusts (REITs) that own and manage communities of multi-family rental apartments as well as manufactured homes. Before investing in this kind of REIT, one should consider inevitable market ups and downs.
What Can You Make Working for a REIT(real estate investment trust)?
A REIT Analyst typically receives a basic salary of $70,862 per year, according to Glassdoor. A lead analyst normally makes $96,333, while a senior analyst typically makes $87,981.
Develop these skills if you want to work in REITs.
To get a job in a real estate investment trust, you need to be good at analyzing data, have good written and verbal communication skills, and know how to use Excel and other Microsoft Office Suite products.
You’ll also benefit from having an interest in data science since many REIT analysts have a basic knowledge of statistics and expertise with databases. Make sure you are familiar with database querying technologies like SQL and Python and data visualization tools like Tableau.
Levels of job satisfaction for REIT analysts
According to REIT analyst assessments, a job in the financial services industry is not without stress. These employees’ work/life balance, as rated by around 85,000 survey respondents, is 3.6 out of 5 stars. However, they are less enthused about their pay and perks (3.4/5) and career chances (3.5/5).
Mortgage REITs, commonly referred to as mREITs, are real estate investment trusts that make investments in mortgage-backed securities (MBS), which are securities that stake a claim to the income flows from a pool of mortgages.
The difference between the revenue they get from mortgage loans and the cost of financing these loans, known as net margin interest, is a major contributor to the income of mortgage REITs(real estate investment trusts). They may be vulnerable to interest rate increases because of this mindset.
Consider the scenario when company XYZ loans money to a real estate developer and is a REIT. The interest on the loans made by the company XYZ generates revenue. Company XYZ is thus a mortgage REIT.
Investors in MBS get monthly payments that are comparable to bond coupons. Therefore, it could be a decent investment for income-seeking investors who like high dividend returns. However, investors should be mindful of the dangers related to Mortgage REITS, including the interest rate and credit risk.
Agency and Non-Agency mREITs are further divided into subcategories of mREITs.
Agency mREITS Agency
REITs buy mortgage-backed securities (MBS) backed by GSEs, including Fannie Mae, Freddie Mac, and Ginnie Mae. The agencies ensure that the house mortgages in the pools backing the securities will be repaid in full, giving the securities a high degree of credit safety. However, the MBS agency may lag when homeowners pay back or modify their mortgages.
Non-Agency REITs(real estate investment trusts) make MBS investments and are backed by mortgages on real estate that government-run institutions do not guarantee. Instead, sponsorship is frequently provided by private businesses without government assistance. These pools can include commercial or jumbo home loans that agencies can’t underwrite.
How much professional experience would you need to be a strong candidate?
Since most REIT analysts have two to four years of experience, if you reach or have passed that milestone, you may be certain that you are quite competitive in terms of experience.
Hybrid REITs are real estate investment trusts that include equity and mortgage components. While mortgage REITs engage in mortgage loans or mortgage-backed securities, equity REITs own real estate. By diversifying among both investment types, hybrid REITs seek to get both benefits with less risk than if they were engaged in one or the other.
A good investment, REITs?
For various reasons, REITs may be a wise investment, with more than 145 million investors. Investors might consider investing in a REIT to diversify their portfolio without considerably increasing risk.
You have a tax benefit since REITs do not pay corporate taxes.
While most equities have dividend yields of less than 2%, several REITs provide dividend yields of above 5%. Therefore, anybody looking for more opportunities to reinvest or generate more income should consider investing in a REIT.
Advantages of REITs
The many advantages that REITs provide make them a desirable investment choice. The following are some of the most salient advantages of purchasing REITs:
Because they are obligated to distribute at least 90% of their taxable revenue as dividends to shareholders, REITs have the potential to provide substantial returns. In addition, it implies that they often can reinvest their profits and expand more quickly than other kinds of investments.
You may diversify your portfolio by adding a REIT as a new asset class. You may increase your exposure to several real estates, such as office buildings, malls, apartments, warehouses, and more, through diversification. It may reduce risk and increase earnings.
REITs must abide by SEC rules and are extremely open. Consequently, it offers an additional layer of protection to guarantee that the management does not misuse the investor’s money.
How Do You Invest?
Your money may be invested in various ways, each having benefits and drawbacks. For example, mutual funds, exchange-traded funds, and purchasing publicly traded REIT securities are all ways to invest in REITs.
The following platforms are available for REIT investments:
It is a platform for trading REITs online. Investors may purchase debt and equity assets and “private REITs” for a minimum investment of $1,000. These are akin to exchange-traded REITs.
Realty Mogul invests in multi-family homes, offices, retail establishments, industrial sites, healthcare facilities, and another real estate. This platform now has more than 175,000 registered investors. First, however, a few easy actions must be taken to participate:
- Visiting the real estate mogul’s website
- Open a profile online.
- Choose the investment plan based on your spending limit.
- Make an online purchase.
- Your account is ready to use online. Using your dashboard, you can always keep track of your assets.
Investors may buy shares in real estate investment trusts via this online marketplace. With as little as $10, investors may diversify their portfolios via fundraising. Additionally, Sign up for this platform on your own by doing.
Using a website or mobile application to create an account.
Choose from the available choices for the account level and investment programs.
Under your investing strategy, the firm will provide you with a personalized portfolio.
A fundraising dashboard will make it simple for you to manage your investment independently.
Excellent for Micro Investors
With the aid of RITs, small real estate investors may now invest in commercial real estate portfolios. For example, the investment might go toward a mall, an office complex, a hotel, etc. In addition, for small investors, REITs may provide the following advantages:
- There is no need for a sizable down payment.
- The acquisition of the home is not subject to a mortgage.
- Many real estate holdings allow investors to make a small investment of as little as $20.
- The danger of directly owning real estate is decreased by investing in a REIT.
- You may invest in an ETF or a REIT stock in a few clicks (Assuming you already have a brokerage account).
- Earn guaranteed monthly earnings almost always.
- The monthly dividends you get from a REIT if you invest via a registered account, such as a TFSA, are tax-free.
- In the long term, small investors might anticipate capitalization.
- There is a lot of liquidity.
- Take steps to avoid inflation.
According to market capitalization, these are the biggest REITs:
|REITs||Location of the Headquarters||Market capitalization||CEO Name|
|Weyerhaeuser||Washington, USA||$27.9 billion||Doyle Simons|
|Crown Castle International Corp.||Texas, USA||$42.5 billion||Jay Brown|
|Digital Realty Trust||California||$22.2 billion||A. William Stein|
|American Tower||Massachusetts, USA||$74.0 billion||James D. Taiclet, Jr.|
|AvalonBay Communities||Virginia, USA||$23.3 billion||Timothy J. Naughton|
|Public Storage||California, USA||$38.0 billion||Ronald L. Havner, Jr.|
|Equinix, Inc.||California, USA||$32.8 billion||Peter Van Camp|
Job Statistics for the Real Estate Industry
REITs are in great demand, and the real estate sector has a healthy employment market.
According to the US Department of Labor, property managers, real estate brokers, and salespeople are in more demand. As a result, thousands of people will be working nationwide in the real estate industry in 2022, with an average yearly salary of $51,220.
On average, real estate brokers are paid far less than in the REIT sector. The median Real Estate Investment Trust (REIT) analyst made $108,164 year as of October 2022, which is double the income of real estate brokers and salespeople. Further, the usual salary range is between $76,495 and $145,071. According to estimates, real estate investment trusts indirectly provide 2.6 million full-time jobs.
According to projections from the Bureau of Labor Statistics, employment in the real estate sector will increase during the next several years. So a career in REITS is a great choice if you’re seeking steady work with high prospects and decent compensation.
REITs with the highest market caps
Market capitalization is another name for market cap. For example, the market value of the outstanding shares of a publicly traded firm is referred to in this idiom while discussing investments. We also state that a company’s market capitalization represents its value.
A Sector with Room for Growth
Even though working in the financial services industry is not for everyone, there are benefits. For example, it is conceivable to get a high base salary in a corporation firmly rooted in a sector that isn’t going away—real estate—at a real estate investment trust in particular. In addition, the skills you need are similar to those needed in related fields, such as data science, so if you ever need to or want to change careers, you may find it easy to do so.
Job Categories in REITS
Interested in launching a career in the REITs sector? This sector has several occupations, ranging from entry-level work to more senior roles. Following is a list of some of them:
Roles in Development
Development managers supervise the construction of new structures or renovations and guide the most profitable ways to utilize available space. In a REIT, development positions are crucial since they guarantee that the company’s assets are maintained properly and create income.
They work with financial growth as part of their job as well. Because they pay well, are demanding, and are highly-regarded, development jobs in the REIT industry are in high demand. Their annual salary ranges from $62,950 to $83,091. A real estate and finance bachelor’s degree is needed for this career. In addition, good analytical abilities are required.
Acquirers are responsible for locating and assessing possible acquisition targets, formulating and negotiating contracts, and organizing due diligence operations.
These real estate investing professions also have a high income of $80,000 per year. This role is open to anybody with a background in business, marketing, finance, or capital markets. Additionally, to succeed in an Acquisition function, one must have good analytical skills, knowledge of the real estate market, and the capacity to think creatively to solve challenges and present new investment prospects.
Roles in Property Management
The REIT’s properties are overseen by property managers, who are also in charge of lease enforcement, marketing, maintenance and repair, and rent collecting. There are no prerequisites for employment as a property manager.
Additionally, Candidates who can handle a range of circumstances and have good project management skills are preferred. The REIT firm and ranges determine the salary of a property manager from $47,657 to $65,989.
Asset Management Roles
In the real estate investment trusts sector, it is one of the top-paid jobs. Further, A REIT’s asset manager oversees daily operations and tries to preserve and increase the portfolio’s value. Additionally, It can include managing improvements and repairs or negotiating leases.
It includes creating and carrying out company strategies, keeping track of performance, and managing capital expenditures. In addition, asset managers must be able to deal with acquisitions, accounting, finance, and development to achieve their jobs.
Additionally, they manage every part of a REIT’s portfolio, including its purchase, financing, capital expenditures, leasing, and disposal. Up to $200,000 may be earned annually by asset managers.
Roles in Investor Relationships
Relationship management with investors is the responsibility of IR. Additionally, they often entail developing and implementing communication plans for investors, analysts, and the financial community with a team of specialists. For example, the investor relations department will plan the annual meeting and any related materials, such as the proxy statement and annual report. Additionally, they are required to comply with all SEC regulations.
The candidate must possess a bachelor’s degree in finance and accounting to be considered for this post. In addition, he must be proficient in English and be able to provide outstanding presentations. The abilities that a competitive individual should possess include managing investor relations (IR) programs and doing financial tool analysis. The average annual wage is $104,509.
Residential Property Sales Manager
Real estate sales supervisors oversee a team, educate and assist agents, aid in the expansion of their firms, and provide performance evaluations. In addition, they are in charge of the business unit’s day-to-day operations, including staff management, sales, equipment rental, repair, maintenance, daily locker rental, and visitor service trails.
Further, to be considered for this leadership position, one must be interested in leading a team, acquiring new customers, gathering and organizing sales data, and handling challenging duties. However, a bachelor’s degree in business, marketing, finance, or accounting is required. A real estate sales supervisor makes $44,321 per year.
Further, creating new leads, visiting customers, and creating lease agreements are all tasks that fall within the purview of the leasing consultant. The lease expert speaks for the real estate sector. Additionally, helping customers choose houses and properties that suit their requirements and budget. They aid clients in making purchases.
Additionally,Candidates for this position should have exceptional marketing and advertising abilities and understand the real estate sector. Further, Depending on the company and work level, the average annual salary for a leasing consultant is $35,500. For this position, a candidate should have a bachelor’s degree in property management or a closely connected discipline.
Assessor of Real Estate and Property
Additionally, a real estate appraiser is a specialist tasked with determining a piece’s worth. In-depth market knowledge is necessary for appraisers to provide an accurate estimate.
Further, the applicant for this position must be certified in appraiser training and possess additional real estate expertise. Earning potential for real estate property appraisers ranges from $35,000 to $200,000. Additionally, they must be adept at communicating with customers, have good data analysis and comparison abilities, and have excellent listening skills.
Current Positions in the REIT Sector
There are several work opportunities for those with a strong interest in finances and real estate. Further, thanks to well-paying employment, you may have the life of your dreams. Additionally, you can learn more about some of these well-paying careers and their wages from the table below.
|Director of Real Estate and Facilities||$130,000 per year|
|Real Estate Agent||$100,000 per year|
|Director of Acquisition||$125,000 per year|
|Property Manager||$90,000 per year|
|Construction Supervisor||$89,000 per year|
|Accounting Manager||$90,000 per year|
|Financial Analyst||$80,000 per year|
These are just a few available positions, but you may also look for and apply for new positions online or by stopping by the real estate firm that is most convenient for you.