How to Find the Best Paying Jobs in Real Estate Investment Trust

The attraction of real estate is undeniable. Whether you’re drawn to the tangible nature of buildings or the potential for financial rewards, the industry offers a multitude of career paths.  But have you considered the exciting sphere of Real Estate Investment Trust (REIT)? 

REITs have seen significant growth in recent years, driven by the increasing value of real estate assets. As a result, REITs offer a variety of high-paying jobs, attracting professionals from diverse backgrounds. 

This article explores the best paying jobs in real estate investment trusts, providing insights into the top 10 roles, compensation, and the overall job market within REITs.

Key Takeaways

• The real estate investment trusts industry offers diverse, well-paying careers. 
• Roles at the top of the salary scale involve significant responsibility, financial expertise, and strategic thinking. 
• Entry-level positions often require specific degrees or certifications, while some senior roles benefit from extensive experience. 
• A career in REITs allows you to combine your interest in real estate with financial markets and contribute to a dynamic industry. 

What is a Real Estate Investment Trust (REIT)?

A Real Estate Investment Trust is a company that owns, operates, or finances income-producing properties. REITs offer an opportunity for individual investors to earn a share of the income produced through commercial property ownership without having to buy, manage, or finance any properties themselves. The structure of REITs allows investors to gain exposure to real estate markets while maintaining liquidity and receiving dividends.

REITs are structured as corporations or trusts, which must meet specific regulatory requirements to qualify for tax advantages. The primary structural elements of a REIT include:

Ownership and Management

REITs are owned by shareholders who invest in the trust. The REIT, in turn, owns and manages the real estate properties. A professional management team typically handles day-to-day operations, such as property management, leasing, and maintenance. The board of directors oversees the REIT’s management and strategic direction, ensuring it aligns with shareholders’ interests.

Income Distribution

One of the essential requirements for REITs is to distribute at least 90% of their taxable income to shareholders in the form of dividends. This distribution requirement enables REITs to avoid paying corporate income tax at the federal level, making them an attractive investment for income-focused investors.

Taxation

REITs benefit from a unique tax status where they are not subject to federal income tax on earnings distributed to shareholders. However, shareholders pay taxes on dividends received.

To maintain this status, REITs must meet specific criteria, such as investing at least 75% of their total assets in real estate and deriving at least 75% of gross income from real estate-related sources.

Types of REITs

REITs can be categorized into several types based on the nature of their assets, their business model, and how they are traded:

Equity REITs

These are the most common types of REIT. Equity REITs own and operate income-producing real estate, such as office buildings, shopping malls, apartment buildings, and hotels. The primary source of revenue for equity REITs is rental income generated from leasing out their commercial properties.

Investors in equity REITs benefit from both dividend income and potential appreciation in property values.

Mortgage REITs (mREITs)

Unlike equity REITs, mortgage REITs do not own properties directly. Instead, they finance income-producing real estate by purchasing or originating mortgages and mortgage-backed securities.

mREITs earn income from the interest on the mortgage loans they hold. These REITs are more sensitive to interest rate fluctuations and typically offer higher dividend yields than equity REITs; they also carry higher risk.

Hybrid REITs

Hybrid REITs combine the characteristics of both equity and mortgage REITs. They invest in both physical properties and mortgage loans. This diversification allows hybrid REITs to generate income from property rentals and mortgage interest, balancing the risks associated with each.

Publicly Traded REITs

These REITs are listed on major stock exchanges and can be bought and sold like stocks. They offer high liquidity and are accessible to a broad range of investors.

Publicly traded REITs are subject to the same regulations as other publicly traded companies, including reporting requirements and corporate governance standards.

Public Non-Traded REITs

Public non-traded REITs are registered with the Securities and Exchange Commission (SEC) but do not trade on major exchanges. They are typically sold through broker-dealers.

These REITs offer lower liquidity than publicly traded REITs, but they may provide a more stable investment since their value is not influenced by stock market volatility.

Private REITs

Private REITs are not registered with the SEC and are not publicly traded. They are typically available only to accredited investors and institutional investors. These REITs offer the least liquidity but can provide access to unique real estate investment opportunities and may offer higher potential returns.

Fast Fact

REITs generate passive income primarily through leasing space and collecting rent on their properties. This rental income is the main source of revenue for REITs and is then distributed to shareholders in the form of dividends.

Top 10 Best Paying Jobs In Real Estate Investment Trusts

Beyond the investment side,  REITs offer a dynamic and lucrative job market. While pinpointing the exact number of jobs within REITs is challenging due to various factors, the expanding REIT market indicates a positive outlook. According to industry reports, the number of REITs globally is steadily increasing, signifying a growing demand for skilled professionals across diverse roles. 

Now, let’s delve into the high-paying careers that propel the REIT industry: 

1. Chief Executive Officer (CEO) / Chief Operating Officer (COO) 

Salary Range: $200,000 – $1 million+ per year 

Leading the charge, CEOs and COOs in REITs set the strategic direction, oversee daily operations, and ensure overall success. These positions require extensive experience in real estate, finance, and leadership. Their leadership is critical to ensuring the trust meets its financial goals and delivers value to its investors. Given the high stakes, a CEO / COO’s compensation package is among the industry’s highest.

2. Chief Financial Officer (CFO)

Salary Range: $150,000 – $500,000+ per year 

The CFO is the financial mastermind responsible for managing finances, capital markets, risk mitigation, and financial reporting. They play a key role in financial decision-making and ensure the trust’s financial stability. The CFO’s expertise in managing the financial aspects of the REIT justifies their substantial salary. Strong financial acumen, accounting expertise, and strategic thinking are crucial for this role. 

3. Real Estate Investment Analyst / Manager

Salary Range: $100,000 – $300,000+ per year

Real estate investment analysts are responsible for evaluating potential investment opportunities for the REIT. They conduct market research, financial modeling, and risk assessment to support decision-making. Their analysis is crucial for the acquisition and management of profitable properties. They require financial expertise, strong analytical skills, and a deep understanding of the real estate market. 

4. Property Manager

Salary Range: $70,000 – $120,000 per year

Property managers handle the day-to-day operations of the REIT’s properties. This includes managing tenant relations, overseeing property maintenance, and ensuring that properties generate optimal rental income. Their ability to maintain high occupancy rates and manage expenses is key to the REIT’s success. 

5. Asset Manager

Salary Range: $70,000 – $200,000+ per year 

Asset managers are tasked with optimizing the performance of the REIT’s portfolio. They are responsible for maximizing the value of each asset through renovation, tenant engagement, and market analysis. Their role is critical in ensuring that the REIT’s assets are managed efficiently and profitably. Strong analytical and property management skills are essential. 

6. Acquisitions Analyst / Manager

Salary Range: $60,000 – $180,000+ per year 

Acquisitions managers are the dealmakers. They source, analyze, and negotiate the acquisition of new properties for the REIT portfolio. Their work is essential in expanding the REIT’s portfolio with valuable assets. A keen understanding of the market, valuation skills, and strong negotiation skills are crucial. 

7. Development Manager

Salary Range: $50,000 – $150,000+ per year 

Development managers oversee the construction and development of new properties within the REIT’s portfolio. They work with architects, contractors, and engineers to ensure projects are completed on time and within budget. Construction management skills and experience in real estate development are essential.

8. Legal Counsel (Real Estate Attorney)

Salary Range: $70,000 – $200,000+ per year 

Legal counsel provides essential legal guidance on all aspects of the REIT’s operations. They draft contracts, manage legal disputes, and ensure compliance with regulatory requirements. Real estate attorneys manage compliance programs, conduct audits, and provide training to ensure that the trust operates within legal boundaries. Strong legal knowledge, particularly in real estate and corporate law, is essential.

9. Portfolio Manager 

Salary Range: $80,000 – $250,000+ per year 

Portfolio managers oversee the day-to-day operations of a REIT’s real estate portfolio. They focus on maximizing occupancy rates, rental income, and property value through strategic leasing, tenant relations, and property maintenance. 

10. Investor Relations Manager

Salary Range: $80,000 – $140,000+ per year

Investor relations managers are the primary contact point between the REIT and its investors. They provide updates on performance, handle inquiries, and manage communications related to investor activities. The investor relations manager role is essential for maintaining investor confidence and trust in the REIT.

Factors Influencing Salary Levels in REIT Jobs

Salary levels in REIT jobs can vary widely depending on several factors. These factors influence not only the compensation amount but also the compensation package’s structure, including bonuses, stock options, and other benefits. Understanding these factors can help you navigate a career path within the REIT industry and maximize your earning potential.

Job Role and Responsibilities

The specific role within a REIT has a significant impact on salary levels. High-level executive positions, such as CEOs, CFOs, and portfolio managers, command higher salaries due to the strategic responsibilities and decision-making power associated with these roles.

Technical and specialized roles, such as those in finance, legal, or property management, often offer higher salaries. For instance, positions in investment analysis, acquisitions, and asset management typically pay more due to the expertise required.

The level of responsibility and the scope of the role also play a crucial part in determining salary. Roles that involve managing large portfolios, overseeing multiple properties, or driving major investment decisions tend to come with higher compensation.

Experience and Expertise

As with many industries, more experienced professionals generally command higher salaries in the REIT sector. Senior professionals with extensive industry knowledge and a proven track record of success can expect to earn significantly more than those in entry-level positions.

Deep knowledge of the real estate market, particularly in areas like commercial real estate, property development, or market analysis, can lead to higher pay. Expertise in niche areas, such as sustainability or technology integration in real estate, may also enhance earning potential.

Holding relevant certifications, such as a Chartered Financial Analyst (CFA), Certified Commercial Investment Member (CCIM), or real estate licenses, can increase salary prospects. These credentials signal a higher level of expertise and commitment to the field.

Location

Salaries in REIT jobs can vary significantly based on the location of the job. Positions in major financial hubs like New York, London, or Hong Kong generally offer higher salaries due to the cost of living and the concentration of high-value real estate markets in these cities.

Company Size and Type

Larger REITs with extensive portfolios and significant market influence typically offer higher salaries than smaller regional REITs. Larger firms often have more resources to invest in talent and may offer more comprehensive compensation packages.

Employees at publicly traded REITs may receive higher base salaries and additional benefits like stock options, which can increase total compensation. Private REITs, while potentially offering higher base salaries, might not provide the same level of stock-related compensation.

How to Pursue a High-Paying Career in REITs

Pursuing a high-paying career in REITs requires a strategic approach, combining education, experience, networking, and continuous professional development. The REIT industry offers various lucrative career paths, but achieving success and earning a high salary demands dedication and a clear understanding of the sector. Here’s a step-by-step guide on how to build a high-paying career in REITs:

Gain Relevant Education

Start with a bachelor’s degree in a relevant field such as finance, business administration, real estate, or economics. These disciplines provide a solid foundation for understanding REITs’ financial and operational aspects.

Consider pursuing an advanced degree, such as a Master’s in Business Administration (MBA) focusing on real estate or finance. An advanced degree can open doors to higher-level positions and enhance earning potential.

Enroll in specialized real estate programs or certifications offered by universities or professional organizations. These programs provide in-depth knowledge of the real estate market, investment strategies, and property management.

Obtain Professional Certifications

Depending on your career goals, obtaining a real estate license may be beneficial, especially if you plan to work in property transactions or management. The well-known certifications in this sphere include:

1. Certified Commercial Investment Member (CCIM): This certification is highly regarded in the commercial real estate industry and demonstrates expertise in investment analysis and portfolio management.
2. Chartered Financial Analyst  (CFA): The CFA designation is valuable for those interested in REITs’ financial analysis and investment aspects. It’s particularly relevant for roles in portfolio management, acquisitions, and financial analysis.

Gain Practical Experience

Start by securing internships with REITs, real estate firms, or financial institutions that manage real estate assets. Internships provide practical experience, networking opportunities, and a foot in the door for full-time positions.

Begin your career in entry-level roles such as real estate analyst, financial analyst, or property manager. These positions offer valuable hands-on experience and a chance to develop industry-specific skills.

Gain experience in real estate transactions, including acquisitions, dispositions, and leasing. Understanding the intricacies of these processes is crucial for advancing to higher-paying roles.

Develop a Niche Expertise

REITs operate across various real estate sectors, including commercial, residential, industrial, retail, and healthcare. Developing expertise in a specific sector can make you more valuable to employers and increase your earning potential.

Build expertise in areas such as financial modeling, market analysis, property valuation, and asset management. These technical skills are in high demand and can lead to higher-paying roles.

Keep up with market trends, economic indicators, and regulatory changes affecting the real estate industry. Staying informed allows you to anticipate market shifts and make strategic decisions that can enhance your career.

Network and Industry Connections

Participate in real estate conferences, seminars, and networking events. These gatherings provide opportunities to meet industry professionals, learn from experts, and build valuable connections.

Become a member of professional organizations such as the National Association of Real Estate Investment Trusts (Nareit) or the Urban Land Institute (ULI). Membership in these organizations can provide access to resources, job opportunities, and industry news.

Seek out mentors who are experienced in the REIT industry. Mentors can provide guidance, share industry insights, and help you navigate your career path.

Consider Geographic Mobility

High-paying REIT jobs are often located in major real estate markets such as New York, London, San Francisco, or Hong Kong. Being open to relocation can provide access to more lucrative opportunities.

Explore international REIT markets if you’re willing to work abroad. Certain regions may offer higher salaries or unique opportunities for career advancement in the real estate sector.

Final Remarks

The real estate investment trust industry offers a diverse range of well-paying careers. From top executives to specialised roles, there’s a place for professionals passionate about real estate and financial markets.

Obtaining best-paying jobs in real estate investment trusts requires a combination of education, experience, networking, and strategic career moves. By specializing in a sector, gaining practical experience, obtaining relevant certifications, and continuously improving your skills, you can position yourself for success in the competitive REIT industry. Additionally, being proactive in career advancement and open to opportunities in major real estate markets can significantly enhance your earning potential.

FAQ

What are the leading real estate investment trust jobs?

Among many other options, highly demanded positions are Property Manager, REIT Analyst, Asset Manager, Lawyer, Real Estate Agent,  Financial Analyst, Property Developer, etc.

Why Consider a Career in REITs?

Pursuing a career in REITs can be both financially and professionally rewarding. With the sector’s continuous growth, there are ample opportunities for advancement, job security, and the potential for substantial earnings.

How many jobs are available in real estate investment trusts?

There are approximately 326,000 jobs in the REIT industry and 3.4 million jobs indirectly related to REITs. Depending on your location and market conditions, you might expect 1000 to 2000 jobs opening in the sector at any time.

What is the difference between real estate brokers and real estate developers?

Although the two professions are related, their distinct differences set them apart. Brokers are licensed professionals who are middlemen between buyers and sellers of real estate. On the other hand, a developer is a professional involved in buying, selling, and developing land and properties.

What is the leading real estate investment trust?

The most significant real estate investment trusts by market cap are Prologis 1PLD, American Tower 2AMT, Equinix 3EQIX, and Welltower 4WELL.

What is the difference between real estate agents and real estate investors?

Real estate agents earn commissions on their deals. Depending on the property, this can vary from 1% to 5% or even more. However, a real estate investor earns no commission; rather, the investor benefits from the difference between a property’s purchase and sale prices.