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That’s not the case for landlords who They’ve shuttered less productive, less
own properties spread out across a trafficked locations, and gotten pickier
whole entire city, whole entire state about what and who they lease to.
or whole entire country. They have to
work with third parties, which aren’t How they’ll fare from here depends
always convenient in such cases and greatly on those choices.
are almost never as cost-effective.
For example, shopping center REITs
In iREIT’s well-researched opinion, can hold anything from grocers to fast-
these properties are just not that food chains to specialty stores. The sky
worthwhile to buy into comparatively might not be the limit here, but the
speaking. ceiling is pretty high nonetheless.
WHAT YOU NEED TO
KNOW ABOUT RETAIL
REITS According to the International Council
of Shopping Centers (ICSC), shopping
centers can range in size from 30,000
As with residential REITs, retail REITs square feet to 150,000. And when
come in enough shapes and sizes to be they’re well-situated, the REITs that
arranged into their own subsets. Also own them can be extremely defensive
similarly, hose subsets don’t always buys that stay strong no matter what
respond to the same risks due to the the larger economic or shopping
different kinds of establishments they trends may be.
host. With that said, yes, e-commerce
has taken its toll on each and every
one of them to some degree or
another. This has forced retail REITs to
rethink, re-evaluate, and restructure
how they
do business.
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