Office REITs can provide diversification for REIT investments but it’s best to invest in those that have interests in economic strongholds like Toronto or Vancouver.
Retail REITs
This type of REIT deals in supermarkets, grocery stores, pharmacies, shopping centres, and malls. With the rise of online shopping and the recent pandemic, this REIT took a hit. However, pharmacies and groceries are still a necessity, so this can still be a viable part of a diversified portfolio.
Industry REITs
These REITs own and manage industrial facilities and rent out space to industrial tenants. Some industrial REITs focus on specific types of properties, such as warehouses, data centres, and distribution centres. Since 2018, demand for warehouses and data centres has spiked, driving more growth for industrial REIT revenues.
Thanks in part to the pandemic, these properties will remain crucial for online stores, data management, logistics, and other e-commerce needs. In our 2023 interview with two asset managers, they said that industry REITs are well positioned in Canada.
There are real estate funds or companies that are not registered with the SEC. As this REIT is “private,” their shares are not traded on national stock exchanges. Typically, private REITs are sold only to institutional investors.
