
Phoenix has seen a significant surge in REIT investments, with a whopping 70% of commercial properties being owned by REITs, according to a recent study.
The city's strong economy and growing population are major drivers of this trend, with many investors seeking stable and lucrative returns on their investments.
The average annual return on investment for REITs in Phoenix is around 8-10%, making it an attractive option for investors.
The city's diverse economy, including major industries in technology, healthcare, and finance, provides a stable foundation for REIT investments to thrive.
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What Are REITs in Phoenix?
REITs in Phoenix are a type of investment that allows individuals to invest in real estate without directly managing properties.
REITs are companies that own or finance real estate properties, providing a way for investors to diversify their portfolios and earn rental income.
Phoenix is a popular location for REITs due to its growing economy and increasing demand for housing and commercial space.
REITs in Phoenix can invest in a variety of property types, including apartments, office buildings, and shopping centers.
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Fundamental Income
Fundamental Income is an investment firm located in Phoenix, Arizona, that offers solutions in the net lease sector. They provide innovative investor access and efficient capital to net lease properties through various strategies.
One of the ways Fundamental Income operates is through the NETL (Net Lease Estate ETF). This allows investors to diversify their portfolio in an organized and tradeable manner.
Fundamental Income is supported by Brookfield, a significant backing that gives investors more confidence in their investment decisions.
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Arizona's Largest
Arizona's Largest REITs are a great place to start when exploring the world of REITs in Phoenix. Vereit, with a market capitalization of $9.3 billion, is one of the largest REITs in the state, owning a diverse portfolio of properties featuring restaurants, retail centers, offices, and industrial sites.
Vereit's tenants include big names like Red Lobster, Walgreens, Family Dollar, FedEx, CVS, Dollar General, and Albertsons. Spirit Realty Capital, another large REIT in Arizona, owns a diverse portfolio of properties including those for retail, office, and industrial customers.
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Spirit Realty Capital's tenants include Walgreens, Circle K, CVS, and Carmax. Healthcare Trust of America specializes in medical centers located near hospitals, such as Estrella Medical Plaza in Phoenix and Webb Medical Plaza B in Sun City West.
Store Capital owns a diverse portfolio of properties including restaurants, retail centers, health clubs, and movie theaters. Its tenants include Applebee's, Ashley Furniture, Burger King, and KFC.
Whitestone Picks Another Shopping Center
Whitestone REIT has made another acquisition in the Phoenix area, this time adding a shopping center to its portfolio.
In 2018, the company acquired the 1.2 million square foot Marketplace at Paradise Valley, a regional shopping center in Phoenix.
The acquisition was a strategic move to expand Whitestone's presence in the Phoenix market, which is known for its strong retail fundamentals.
The Marketplace at Paradise Valley is a high-end shopping center with a strong tenant mix, including luxury retailers and restaurants.
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Whitestone's acquisition of this shopping center demonstrates its commitment to investing in high-quality assets in growing markets.
The company's focus on acquiring shopping centers in infill locations, such as the Marketplace at Paradise Valley, has been a key factor in its success in the Phoenix market.
Whitestone REIT has a proven track record of successfully acquiring and managing shopping centers in the Phoenix area, with a portfolio that includes over 50 properties.
Frequently Asked Questions
What is the downside of buying REITs?
Buying REITs can be sensitive to interest rate changes and has limited growth potential, which may impact your investment returns
Sources
- https://www.hoteldive.com/news/phoenix-hilton-extended-stay-hotel-acquisition/717754/
- https://azbigmedia.com/real-estate/top-5-reits-to-buy-now-in-arizona/
- https://www.azcentral.com/story/money/business/consumer/2015/03/13/reits-offer-way-invest-real-estate/70306966/
- https://www.azcentral.com/story/money/business/consumers/2016/07/15/reits-roll-but-how-long-last/87001444/
- https://www.connectcre.com/stories/whitestone-reit-picks-another-phoenix-area-shopping-center/
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