In Thomas Friedman’s bestseller, “The World is Flat,” he details how a combination of forces have lead to the globalization of business, ideas and community. Although Friedman’s book deals with more of a macro-economic look, his ideas can be applied to the real estate investment market. Quite simply, the rise and evolution of REITs has created a “flat” world when it comes to investing in securitized real estate.

Since the introduction of REITs in the United States in 1960, there has been much advancement for the legislation, leading to the modern REIT era of the 1990s. Today, REIT legislation has evolved even further, and markets across the globe are currently developing real estate investment legislation.

With growth in Asia and Europe, the REIT is gaining popularity and getting exposure in several markets across the globe. Now, we have come to a part of the road where REITs are evolving right before our eyes. REIT legislation has been adopted by more than 25 countries across the globe and there are several more currently taking steps to adopt legislation.

Now is an excellent time to invest in REITs, which are the source for dividends, diversification, liquidity and strong long-term performance. Commercial real estate continues to be a major component of global investing, with more than $4.6 trillion invested in global funds each year.

In fact, investors from all over the world are seeking REITs in their portfolio. This is no surprise since REITs and listed real estate are proving to be efficient and effective investments in countries across the globe. The REIT evolution will continue and we shall see more changes in the years to come.

Erin Corcoran
Managing Editor