Carl H. Lindner College of BusinessCarl H. Lindner College of BusinessUniversity of Cincinnati

Carl H. Lindner College of Business

Real Estate - Institutional Real Estate Investment

Most of today's large scale real estate transactions ($10 million dollars and up) involve institutional investors. Among these are the Real Estate Investment Trusts (REITs), the larger life insurance companies and pension funds. These institutions may utilize commercial brokers in the local markets, but they rely on internal staff to review and analyze proposed investments. Often these institutions look for a real estate background, with an MBA degree, when staffing such positions. Institutional investors pay attention to industry niche market trends, tax law trends, regulatory trends, geographically-based economic trends, demographic trends and global economic trends, in addition to micro-level real estate analysis.

The slogan 'think globally act locally' can be applied to today's institutional investment firms because many of them also 'act globally.' Whether working with domestic or international trusts, strong analytical skills, the ability to manage portfolios and excellent communication skills are required.

For more information, see the National Institution of Real Estate Investment Trusts, NAREIT, and the National Association of Real Estate Investment Fiduciaries, NCREIF.