While many analysts have been predicting that the skyrocketing values that real estate investment trusts (REITs) have experienced over the past two or three years are going to be exactly that – a thing of the past – as the rest of the market begins to recover, these multimillion-dollar investment conglomerates are not going anywhere. In fact, not only are they likely to continue to play a serious role in the commercial real estate recovery, but Neuberger Berman, an REIT investment firm, believes that movement into the healthcare property sector could actually boost REIT profits higher[1]. The firm has “particularly bullish positions” in the REIT Boston Properties, which has commercial property positions in Boston, Washington D.C., Midtown Manhattan and San Francisco. The firm is also increasingly looking at industrial warehouse properties located in transport hubs like Chicago.

This month, healthcare REITs have made some major moves in the industry, with two multi-billion dollar deals in the senior housing industry indicating the mood and direction of the market[2]. REITs can now collect rents from senior-care facilities, making these types of properties far more attractive to investors in this sector of the industry. These trends are all combining to make REIT investing look increasingly attractive to high-volume investors and have the potential to dramatically fortify commercial market sectors.

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[1] http://www.citywire.co.uk/wealth-manager/reits-could-be-set-to-embark-on-strong-run/a481547?ref=wealth-manager-latest-news-list

[2] http://www.costar.com/News/Article/Healthcare-Real-Estate-Mega-Deals-Show-Rebound-in-Seniors-Care-Property-Sector/126889