In this article, How Many Jobs Are Available in Real Estate Investment Trusts? We will discuss the various jobs available.
The world of Real Estate Investment Trusts (REITs) is thriving, offering a plethora of career options for those seeking opportunities in this booming industry.
Wondering how many jobs are available in REITs and what roles you can pursue? This engaging guide has all the answers, along with an exploration of how these trusts function.
How do Real Estate Investment Trusts Work?
Created by Congress in 1960, REITs were designed to democratize income-producing real estate investments. Like any other industry, investing in a REIT involves purchasing stock, with the majority of the income paid out to shareholders by the trust.
To qualify as a REIT, certain rules must be followed: they must resemble mutual funds, be treated as corporations under the Internal Revenue Code, and have widespread shareholder ownership.
Moreover, REITs must primarily own or finance real estate with a long-term investment focus. The Internal Revenue Code specifies that at least 75% of the corporation’s income should come from real estate rent, interest, or asset sales, with at least 75% of assets tied to real estate and 95% of income being passive.
Statistics on Jobs in the Real Estate Industry
The United States Department of Labor reveals a growing demand for property managers, real estate brokers, and sales agents. In 2023, the average annual wage in the real estate industry stands at $51,220, with hundreds of thousands of individuals employed across the country.
In the REIT sector, average wages significantly surpass those of real estate brokers.Real Estate Investment Trust (REIT) analysts earn an average of $108,164 per year as of June 2023 – more than double the earnings of real estate brokers and sales agents. The salary range typically falls between $76,495 and $145,071.
With 274,000 full-time employees and an estimated 2.6 million indirect jobs, REITs offer substantial employment opportunities, enabling individuals to secure higher wages compared to other segments of the real estate industry.
Different Jobs Available In Real Estate Investment Trusts
The real estate investment trust industry presents a wide array of job opportunities. Let’s explore the descriptions of key roles to gain a better understanding:
Development Roles:
Development professionals oversee the construction of new projects, making it an ideal position for project management enthusiasts. Apart from initiating new projects, these roles involve securing financing in collaboration with others. Development jobs in REITs are highly sought-after due to their rewarding compensation, challenging nature, and esteemed status.
Acquisition Roles:
Acquisition jobs within REITs revolve around identifying new investment opportunities and ensuring successful deal closures. These roles demand a strong finance background and cater to individuals with degrees or experience in finance, marketing, business, or capital markets.
Property Management Roles:
Property managers assume responsibility for property operations, including leasing, maintenance, and collections. While no minimum requirements exist for becoming a property manager, exceptional problem-solving and project management skills are crucial.
Starting as a property manager in a REIT often serves as an excellent stepping stone, as it opens doors to potential career advancements within the organization.
Asset Management Roles:
Asset managers oversee the operational and financial well-being of a REIT’s portfolio, aligning with investment goals and preferences. They develop, organize, and maintain client portfolios, collaborating with various teams such as acquisitions, accounting, development, and finance to achieve desired results.
Ensuring compliance with SEC regulations, REIT regulations, and Sarbanes-Oxley is also a critical aspect of the role. Many professionals start in acquisitions or property management and later transition into asset management for residential or commercial properties.
Investor Relationship Roles:
In investor relations, professionals coordinate and handle communication with REIT shareholders. This role offers attractive remuneration and suits individuals with a background in finance or accounting.
Investor relations teams are responsible for organizing annual meetings, preparing meeting documents, and ensuring compliance with SEC regulations.
The Bounty of REIT Jobs
Curious about the availability of jobs? As of June 7, 2023, LinkedIn showcases over 1,278 job openings within REITs alone, reflecting abundant opportunities in the field.
The REIT industry is growing rapidly, necessitating not only investors but also a wide range of support roles.
In conclusion,
The real estate investment trust industry is sizeable and continuously expanding. Working for a REIT entails adhering to stringent reporting protocols and regulations, often requiring a background in accounting or finance.
However, opportunities exist for individuals from various backgrounds to ascend to different roles within REIT organizations. Embark on an exciting career path in this flourishing industry and unlock your potential in the realm of real estate investment trusts.
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