Real estate investment trusts (REITs) have become an increasingly popular investment vehicle and asset class over the past few decades. As their prevalence and assets under management have grown substantially, so too have the job and career opportunities in the REIT industry. Currently, REITs support over 150,000 jobs in the United States across a diverse range of occupations. The outlook for continued job growth and career advancement in real estate investment trusts is bright.
REITs directly employ over 45,000 people in the US
As major owners and operators of commercial real estate, REITs have large in-house staffs to manage their vast property portfolios. According to industry research, REITs directly employ over 45,000 people in roles such as property management, leasing, acquisitions, development, finance and accounting, legal, investor relations, and executive leadership. The largest REIT employers include industry leaders like American Tower, Crown Castle, Prologis, and Equity Residential. Employment levels at individual REITs can range from just a handful of employees at small niche REITs to over 1,000 employees at large diversified REITs. As REITs grow through acquisitions or internal growth, their staffing needs tend to increase accordingly.
Thousands more jobs supported through operations and services
In addition to their direct employees, REITs support many more jobs indirectly through their extensive use of third party property management companies, brokers, contractors, and other service providers. It is estimated that REITs support over 100,000 additional jobs through these outsourced property operations and services. For example, a retail REIT that owns 200 shopping centers would contract with 200 different property management companies to handle the day-to-day management, maintenance, and leasing of each center. Each of those management companies in turn employs leasing agents, engineers, janitors, landscapers, and other staff to service that single property. The outsourcing model allows REITs to focus on higher level portfolio management while supporting many jobs through their vendor networks.
Positive outlook for future REIT job growth
The outlook for job growth in the REIT industry is positive, driven by strong underlying real estate fundamentals and increasing investment flows into the sector. As REITs expand their property portfolios through acquisitions and development, their staffing needs rise in tandem from the corporate office to the property level. There is also job creation through consolidation, as larger REITs absorb smaller competitors and acquire management platforms. The demand for qualified candidates with relevant real estate experience should remain elevated. Younger workers can also benefit from a strong training culture at most REITs. The REIT model offers a viable path to gain property management experience and transition into other real estate careers over time.
Real estate investment trusts support over 150,000 direct and indirect jobs in the US currently, with upbeat prospects for continued job growth and career advancement as the industry further matures and expands.