REITs, Joint Venture and Syndication

Real estate investment trusts (REITs), joint ventures, and syndication are the main methods utilized to invest in industrial real estate.

REITs

Investing in a REIT is basically buying stock in a business that owns and operates property. REIT shares behave as any other stock in the stock market (e.g., ebbing and flowing at the same rate). For example, if a bubble is created or there is a downturn in the stock market, the value of those stocks decline.

Joint Venture

Investing in a joint venture means an individual owns the industrial real estate property in partnership. A partner could be a developer who employs a property administrator to supervise daily happenings and the investors assume a more passive role. A broker is typically utilized to bring this type of deal to market.

Syndication

Syndication is another common way for an individual to invest in industrial real estate. He or she can invest smaller dollars directly into an industrial property or portfolio.

Unfortunately, investing in real estate through a syndication is considered outdated. Not many groups engage this method, primarily because as industrial investment organizations begin to grow, they usually partner with an institutional investor.  Hence, the necessity for smaller-scale passive investors dissipates.