What is a REIT and why were REITs created?
Congress created REITs in 1960 to make investments in large-scale, income-producing real estate more accessible to smaller investors. At that time, the REIT vehicle—through its ability combine the capital of many investors to acquire a portfolio of assets—was the only way for the average investor to invest in significant commercial properties. REITs offer distinct advantages for investors, including greater diversification through investing in a portfolio of properties rather than a single building, and experienced real estate professionals to manage/operate each property.
