Commercial Boulder Real Estate Via REITs?

I’ve had a few clients that were interested in commercial Boulder real estate and while some are interested in a hands-on experience, many of those investors ultimately find themselves looking towards a Real Estate Investment Trust (REIT) to avoid the hassles of management.

While still reaping the rewards of potential income and appreciate benefits of commercial real estate ownership, utilizing a REIT can be one way to move into real estate investment without the same hassles that direct ownership involves.

The latest news suggests that India may introduce REITs and interest is expected to be high. This could be a major step in deregulating the blossoming real estate market in India. It could come as early as next year according to the Securities and Exchange Board of India Chairman Meleveetil Damodaran.

While the market capitalization of REITs in the U.S. reached upwards of $280 billion there have been less than exciting performance results for REITs in German and the U.K. who both launched REITs this year. Some blame the credit crunch and we should keep in mind that like any investment, REIT stocks can be attractive for their dividends, they aren’t without risks.

There are two sides to REITS. On one side is the benefit for owners and developers of real estate. By putting properties in REITs, it allows them to reaise capital for new projects more quickly. This liquidity gives them easy movement to the next project. For investors, the attraction is that REITs offer a low cost and liquid way of investing in real estate.

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