A REIT, or Real Estate Investment Trust, is a company that owns, operates or finances income-producing real estate. Established by Congress in 1960 and modeled after mutual funds, REITs provide Americans the chance to own valuable real estate, present the opportunity to access dividend-based income and total returns and help communities grow, thrive and revitalize.
Technology has made it possible for us to stay connected in ways never before imagined. Mobile communications and the data being shared are not merely increasing—they are exploding. The demand for infrastructure enabling broadband communications is rising and REITs are the backbone of that connectivity.
It takes a lot of real estate to make your cell phone, social media platforms and office network function. That real estate is increasingly owned by REITs.
The wireless network in the U.S. rests on wireless infrastructure—including more than 98,000 cell towers. But mobile data traffic in the U.S. is expected to grow fivefold from 2016 to 2021 meaning America will need significant investment in more cell towers, which can cost between $250,000-$300,000 per tower to install.
Wireless carriers install equipment on cell towers. When this is done, a tower can provide wireless voice and data services to a large geographic area.
Wireless carriers install small nodes on signs, streetlights, utility poles and other existing infrastructure. This adds much-needed capacity to dense urban areas, residential neighborhoods, stadiums, universities and places where large crowds assemble.
Where towers aren’t feasible, wireless carriers install antennas on buildings.
REITs that own infrastructure and telecommunications towers supported 20,000 full-time jobs in 2020.
Data center REITs own and manage facilities that safely store data. These offer a range of products and services to help keep servers and data safe, including providing uninterruptable power supply, air-cooling systems and physical security.
REIT-owned warehouses and fulfillment centers are critical components to meeting the growing demand for e-commerce and rapid-delivery services.
E-commerce facilities require nearly 3 times as much space per $1 billion in sales (1,265,000 square feet) than brick and mortar retail stores.
By 2020, the global B2C (business to consumer) e-commerce market is expected to generate $3.2 trillion in revenue, with the B2B (business to business) e-commerce market expected to be twice that size ($6.4 trillion).
REITs allow anyone to invest in portfolios of large-scale properties the same way they invest in other industries—through the purchase of stocks. REITs own a wide range of real estate ranging from office buildings and shopping malls to cell towers and data centers. REITs own property across all 50 states and provide a significant impact to the national economy and local communities. REIT-owned properties not only help enhance the quality of life in the surrounding communities but they have also provided new jobs, better infrastructure, increased economic activity and other improvements. Learn more at thereitway.com
