3 Things that Investors can learn from the world most prominent real estate investment trust (REIT) firms | Industrial Malaysia
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3 Things that Investors can learn from the world most prominent real estate investment trust (REIT) firms

3 Things that Investors can learn from the world most prominent real estate investment trust (REIT) firms
PROLOGIS (NYSE PLD),  DUKE REALTY (DRE), & BLACKSTONES (BX), with a combined market capitalization of more than USD 150 Billion, knows a lot about real estate investments. After all combine, these firms manage billions of dollars in real estate investments. They have profited dramatically during this current pandemic. Let us take a look at some of their strategic moves during this COVID 19 pandemic.

Renowned REITs are investing in life-science segments
The Life-science segment is one of the fastest-growing segments in this pandemic. The Life-science segment covers a wide range of medical fields, namely biotechnology, pharmaceuticals, biomedical technologies, life systems technologies, nutraceuticals, and the manufacturing of biomedical devices. Thus, it provides excellent potential for investment from a real estate point of view. Many real estate investors see this opportunity, and they invest in laboratories and lease it back to the research house and science companies. The rising trend of flex lab scape where building setup in traditional laboratory space poses another potential investment opportunity. Thus, these real estate investors can purchase this space and rent it out to get their return. Besides, the life science industry is a recession-proof investment as the demand for better healthcare is constantly rising.


Investing in the growth of the industrial real estate
While the pandemic poorly impacts many economies due to lockdown, social distancing, real estate players in the retail and office industry can't escape the faith. However, industrial real estate is gaining overwhelming demand by investors mainly due to the massive uptick in e-commerce. With the uptick in e-commerce, it drives demand in logistics-centric REITs such as Prologis. Prologis is one of the largest real estate investment trusts globally with USD 47.2 B market capitalization. Prologis primarily focuses on distribution centers and warehouses, also known as logistics real estate. Prologis published report has explained that e-commerce requires more than three times the logistics space of brick and mortar stores as this space is used for e-fulfillment areas to keep up with the rising pace of e-commerce demand.


Data centers as an emerging new asset for pandemic investments
Data centers had proved to be the new parcel for pandemic investments, as people worldwide are encouraged to stay at home. Major investors have not focused too much on this sector; however, things may change. Recently private equity giant Blackstone Group has agreed to take QTS Realty Trust (NYSE: QTS).  Since the pandemic for COVID-19, there seem to be increasing amounts of data that businesses and governments generate, from consumers and customers data to government-related services.


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