What are the job opportunities in real estate, and how many jobs are available in real estate investment trusts? Is it an appropriate position to kick off or advance your professional career? Let’s take a look.
If you want to pursue a career in the financial sector, there are several opportunities in real estate investment trusts (REITs). In fact, it is estimated that approximately 274,000 positions will be available in this sector by 2022. And you’re likely to see jobs opening up in development, acquisitions, property and asset management, investor relations, and more.
According to the US Bureau of Labor Statistics, the financial sector will grow by roughly 8%, or over 750,800 new jobs, between 2020 and 2030. As a result, it is now the 5th fastest growing sector in job opportunities, with REITs leading the way.
But before we get to the answer, we’ll look at what REITs are and why they’re essential. Finally, we’ll look at some of the real estate investment trust sector positions available.
- 1 Real Estate Investment Trusts: What are They?
- 2 How do REITs Work?
- 3 Are There May Job Opportunities Available in REITs?
- 4 Types of Jobs Available in REIT’s
- 5 Key Takeaways
Real Estate Investment Trusts: What are They?
A real estate investment trust, also known as a REIT, profits from the development, sale, rental, and management of property. There are around 225 REITs in the United States, with a combined market value of over $1 trillion.
These companies own commercial or residential property. This includes offices, stores, hotels, and much more in terms of commercial properties. While residential properties include apartments, condos, and free-standing homes.
REIT-owned real estate is typically used for development. The developed property is then sold to generate money as part of an investment portfolio.
Other types of real estate investment trusts categories include infrastructure, diversified, and retail REITs. Equity and mortgage REITs also exist. And they are listed on various prominent stock exchanges.
Most people get into real estate investment trusts using their 401(k) or retirement portfolios. You can also buy REITs through Fundrise and Realty Mogul. REITs have a few benefits, such as dividends payouts, partial financial independence, and considerably better tax rates.
As the REIT sector grows and expands, analysts predict that more jobs will be created.
How do REITs Work?
The goal of REITs is to allow people to profit from their real estate investments. All REIT investments follow a list of conditions similar to mutual funds. They are also treated as part of companies under the Internal Revenue Code.
A company must also own or finance a real estate property to qualify as a real estate investment trust.
Are There May Job Opportunities Available in REITs?
The US Department of Labor indicated that the number of jobs in the real estate industry has grown tremendously.
By the end of 2021, there will be 274,000 new jobs available in the REIT sector on a full-time basis. In addition, the REIT sector indirectly creates around 2.6 million full-time jobs.
In addition, new job opportunities are opening on indeed.com, Glassdoor, and more every day.
Most individuals working in real estate can expect to make around $51,000 per year on average. However, in the REIT sector, you can earn in the region of $110,000 per year in a junior position. This is almost double what most real estate agents make.
Therefore, there are many more employment opportunities with better salaries in REITs than in other real estate sectors. This is great if you’re considering a real estate investment trusts career.
Types of Jobs Available in REIT’s
A REIT is responsible for every facet of a real estate project. From early property development to property maintenance and investor communications. That means there’s room for developers, project managers, agents, and more.
On a larger scale, REITs need to ensure the profitability of each real estate portfolio. As a result, these companies require a diverse, skilled team.
Here we look at the various types of jobs available in the REIT sector.
Development is in charge of initiating and constructing new property development projects. This position is suitable for anyone searching for project management experience.
This role entails developing new real estate projects and collaborating with others to fund and manage them.
Development jobs are in high demand because they pay well and are well-respected.
A job in an acquisition role involves finding new investment opportunities. These employees are also in charge of making sure that deals are signed on time. Because of the level of experience required, these REITs roles also pay handsomely.
This role would suit anyone with a degree or experience in finance, marketing, or business.
Property Management Roles
Property managers are in charge of monitoring all aspects of a real estate property’s functioning. This includes rental agreements, upkeep, payments, and anything else necessary. They may also be involved in inspecting properties before development begins.
These roles require the least requirements. They are suitable for individuals that can multitask, work well under pressure, and have solid project management experience.
Working as a property manager for a REIT company is a terrific way to advance your career and gain exposure.
Asset Management Roles
Asset management employees are responsible for real estate investments’ operational and financial side. This is also one of the top-paying roles in the REIT sector, with a potential yearly salary of about $250,000.
An asset manager’s job is to manage a client’s investment portfolio under the client’s requirements. Therefore, they manage, develop, and organize client investment portfolios.
Experienced asset managers need to collaborate with other people on acquisitions, finances, and developing a clients’ portfolio. Simultaneously, the asset manager must guarantee that the SEC, REIT, and Sarbanes-Oxley Act laws and regulations are all followed.
Working your way up from acquisitions to asset management is one of the best career paths in the REIT sector. Anyone with background experience should find an asset management role relatively easily.
Investor Relations Roles
Those in investor relations are mainly concerned with arranging and managing all REIT stakeholder and investor communications. Employees are well compensated, and these roles are suitable for someone who has experience in finance and accounting.
The investor relations group is in charge of setting up annual meetings and preparing annual reports and investor statements. This must all be completed in compliance with SEC guidelines.
Real Estate Attorney Roles
Becoming a REIT lawyer is another way to join this sector. Lawyers are essential to ensuring that all contracts and documentation comply with the law. They also act as intermediaries between all parties involved in the property investment.
Second, lawyers are also responsible for resolving legal property disagreements and arrangements, such as transfers.
Finally, lawyers also provide legal advice to all parties involved to ensure everything complies with the agreed-upon terms and conditions.
As long as people want to buy or rent property, the real estate investment trust sector will continue to grow. By looking at how many jobs are available in the real estate investment trust sector, you’re sure to find a suitable job.
If you’d begin your career in real estate investment trusts, the above list of roles may help. With multiple potential roles in the real estate investment trusts, some top-paying jobs to consider are asset manager, development, and acquisition positions.
These jobs have different requirements, but they provide a dependable source of income. Working for a REIT not only allows you to enhance your skills but also lets you gain a well-paying job.