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2024 REIT Growth Tactics: Navigating Post-Covid Terrain

November 03, 2023 • Real Estate Investment Trust (REIT)


Post-Pandemic REIT Strategies: Diversification and Risk Management

A real estate professional finalizing an investment deal for a client, symbolizing our company's commitment to providing expert guidance and seamless transactions in the real estate investment trust (REIT) sector.


The real estate investment trust (REIT) landscape has been profoundly reshaped in the wake of the global pandemic. As we move into 2024, it’s clear that the strategies which once underscored the sector’s stability are being recalibrated in response to a drastically altered economic environment. In this in-depth exploration, we dissect the investment mechanisms, diversification imperatives, and risk management protocols that are setting the course for REITs in a post-pandemic era. Here at Fortum Digital Services, we empower property management firms to not just navigate but conquer these challenging times with innovative solutions that echo these evolving market dynamics.

The real estate investment landscape has undergone a seismic shift since the onset of the global pandemic. REITs, central to this ecosystem, have faced challenges and opportunities in equal measure. Strategies that have traditionally driven REIT growth and stability are being reexamined through a contemporary lens to ensure resilience and profitability in the face of an altered economic and social terrain. In this detailed exploration, we will unravel the intricate tapestry of REIT strategies, focusing on investment methods, the importance of diversification, and the ever-crucial aspect of risk management.

REIT Strategies: Paving the Way for Investment Success

I. Investment Strategies of REITS

Traditional investment strategies for REITs have largely centered on residential and commercial properties with steady revenue streams. However, the post-pandemic shift has stirred a movement towards unconventional niches. While traditional avenues like malls and office spaces still play a role, there’s a burgeoning interest in data centers, cell towers, and logistics centers that cater to e-commerce platforms. These specialized REITs, like Store Capital or Public Storage, could offer investors a unique angle in the property market.”

For the daring, uncommon investment strategies involve looking into niche markets with higher risk but potentially higher rewards. For example, some REITs are delving into the realm of co-living spaces and ‘ghost kitchens’ — centralized commercial cooking facilities with no dine-in options, designed purely for delivery services. As these trends gain traction, specializing in such areas could signify a bold yet forward-thinking move.

II. Understanding the 90% Rule for REITS

At the core of REIT investment compliance is the 90% rule, which mandates that these entities must distribute at least 90% of their taxable income to shareholders annually. This IRS guideline ensures investors receive a consistent stream of income, making REITs a reliable vehicle for investment. However, how REITs generate and report this income has become more nuanced in the post-pandemic economy. As such, REITs have begun leveraging sophisticated platforms like Yardi Voyager or MRI Software, which provide comprehensive accounting and financial management tailored to the real estate industry’s unique needs, to track their income and distributions accurately, ensuring adherence to this critical rule.

III. The Pillars of REIT Success

A successful REIT isn’t just about adhering to regulatory frameworks; it’s also about proactively managing portfolios to maximize value and yield. Key success factors include:

    High-quality assets remain the cornerstone of any successful REIT. Post-pandemic, this translates into properties with strong underlying demand, like affordable housing and industrial real estate.
    REITs that maintain a diverse geographic portfolio can mitigate risks associated with local economic downturns.
    Leveraging technology for property management, such as Hubspot Real Estate CRM, Zoho CRM for Property Management, or Wise Agent can optimize tenant relations and investment tracking, which can be particularly beneficial for maintaining a competitive edge in tenant acquisition and retention, in addition to streamline operations and reduce overhead costs.
    A mix of tenants across various sectors can cushion REITs from market volatility. A medical office building with a mix of general practitioners, dentists, and specialists exemplifies this strategy in action.

Tenant Diversification

A mix of tenants across various sectors can cushion REITs from market volatility. A medical office building with a mix of general practitioners, dentists, and specialists exemplifies this strategy in action.


In the first segment of our exploration into post-pandemic REIT strategies, it’s evident that flexibility and innovation are critical. The integration of unconventional investment opportunities, strict adherence to regulatory standards, and a robust foundation of traditional real estate investment principles underpin the resilience required for REITs in the coming years.

Stay tuned for the next part where we’ll delve into the intricacies of real estate diversification and why it’s more important than ever in the current landscape.


Traditional investment strategies for REITs have largely centered on residential and commercial properties with steady revenue streams. However, the post-pandemic shift has stirred a movement towards unconventional niches. While traditional avenues like malls and office spaces still play a role, there’s a burgeoning interest in data centers, cell towers, and logistics centers that cater to e-commerce platforms.

I. The Role of Real Estate in Diversification

Real estate assets have long been valued for their diversification potential, thanks to their low correlation with other asset classes like stocks and bonds. Diversification within real estate is equally crucial. REITs that expanded into industrial real estate before the pandemic, for instance, have reaped the benefits of the e-commerce surge that necessitated more warehouse spaces. This segment’s resilience has showcased real estate’s robustness as a diversifier.

II. Why Diversification is Crucial for Real Estate Portfolios

The pandemic has laid bare the volatility of certain real estate sectors. Retail and office spaces, once the bedrock of many REIT portfolios, have seen fluctuating fortunes due to remote work trends and changes in consumer behavior. Diversification helps to balance these sectors with more stable and growing ones like logistics and healthcare-related real estate, ensuring a steady income stream even when individual sectors face challenges.

III. Strategies for Diversifying Your Real Estate Portfolio

Diversification can be achieved through strategic acquisitions, partnerships, and expanding into new geographic markets. Here’s how:

    By diversifying into properties with LEED (Leadership in Energy and Environmental Design) or Energy Star certification, REITs like Hines or Prologis have not only enhanced their sustainability credentials but also appealed to a broader range of environmentally conscious tenants.
    By owning properties in different regions or even countries, REITs can mitigate the risk posed by localized economic downturns.
    This involves engaging in different real estate activities, such as development, renovation, and property management, not just ownership.

The 5% Rule for Diversification Explained

The 5% rule is a guideline suggesting that investors should limit exposure to any single investment to 5% of their total portfolio. For REITs, this rule can guide the dispersion of investments across various property types and geographic locations. In the wake of the pandemic, adhering to this rule could help REIT managers prevent over-concentration in vulnerable asset classes.

Embracing international real estate diversification means REITs are not just looking at geographical diversification but also considering investments across different property types, including retail, industrial, residential, and healthcare facilities. This multi-faceted approach can offer a hedge against market volatility. For example, healthcare real estate is perceived as recession-proof due to the inelastic demand for healthcare services, making it a strategic addition to any diversified REIT portfolio.

Moreover, technological integration into properties is another aspect of diversification. Smart buildings equipped with IoT technology not only attract modern tenants but also provide operational efficiencies and energy savings, leading to long-term cost reductions and environmental sustainability—a key concern for modern investors.


As we dissect the various facets of real estate diversification, it becomes clear that the right mix of assets, operations, and geographies is vital to navigating the post-pandemic real estate market. Diversification is not just a defensive maneuver but an offensive strategy that can lead to discovery of emerging markets and investment opportunities.

Fortum Digital Services champions this strategic diversification with tools that identify trends and optimize online presence for varied real estate investments. Our digital strategies ensure that our partners are visible where these new opportunities emerge.

REIT Risk Management: Navigating Through a Sea of Uncertainties

The post-pandemic landscape is fraught with uncertainties. Risk management has, therefore, become a pivotal aspect of REIT operations. Effective risk management can make the difference between thriving and merely surviving in this new era.

I. Principal Risks Faced by REITS

The three principal risks that all REITs face include market risk, credit risk, and operational risk:

    Changes in interest rates, economic downturns, and fluctuating property values can all impact a REIT’s performance.
    This relates to the potential default by tenants on their lease obligations, significantly impacting income.
    From property management failures to compliance issues, operational risks can stem from internal processes or external events.

Understanding these risks is the first step towards developing robust mitigation strategies.

II. The 90% Rule Revisited: a Balancing Act

While the 90% rule was mentioned earlier, its relevance to risk management is multifaceted. Compliance with the rule requires REITs to have a fine-tuned strategy for income generation and distribution. Over-distribution could limit reinvestment opportunities, whereas under-distribution could lead to non-compliance penalties. This delicate balance affects a REIT’s ability to manage cash flow and capital reserves, which are critical in mitigating market and credit risks.

III. Mitigating the Biggest Risks in Reits

To manage these risks effectively, REITs are turning to several strategies:

    As discussed previously, diversifying assets can help mitigate market risk.
    This relates to the potential default by tenants on their lease obligations, significantly impacting income.
    From property management failures to compliance issues, operational risks can stem from internal processes or external events.

The 5 50 Rule and REIT Stability

The 5 50 rule, specific to REITs, states that no more than 50% of the value of the REIT’s assets can be represented by securities of five or fewer issuers. This rule complements the principle of diversification and is designed to prevent over-concentration in a limited number of assets, thus spreading risk.

In a rapidly evolving marketplace, REITs must not only adapt to current trends but also anticipate future shifts in real estate dynamics. This includes keeping an eye on urban development trends, demographic changes, and the evolving needs of both commercial and residential tenants.

Fortum Digital Services supports REITs in navigating this complex landscape with advanced analytics and market insights. Our expertise in digital marketing allows us to equip property management groups with the tools necessary for not just staying relevant but excelling in a competitive digital ecosystem. With a focus on user experience and innovative design, we ensure that our clients’ online presence resonates with modern tenants and investors, driving growth and strengthening their market position.


Risk management for REITs in 2024 is as much about compliance and stability as it is about innovation in the face of new risks. Strategies that once served REITs well must be reevaluated and recalibrated to reflect the post-pandemic reality, ensuring not only survival but also prosperity in an ever-evolving market.

Fortum Digital Services not only recognizes these challenges but provides the digital arsenal to confront them. Our data-driven insights enable property management companies to make informed decisions, backed by a suite of tools that address risk from multiple angles.

Together, the strategies and insights discussed across these three parts form a cohesive framework for Post-Pandemic REIT Strategies in 2024. It is through understanding and implementing these practices that REITs can look forward to not just navigating but mastering the uncertain waters of tomorrow’s real estate market.


In conclusion, the post-pandemic world demands a REIT strategy that is as fluid as it is firm, combining core investment principles with an adventurous foray into new territories and technologies. Fortum Digital Services stands at the forefront of this evolution, offering digital solutions and insights that enable our clients to stay ahead of the curve. Our expertise in web development, online marketing, and data analysis is designed to equip property management groups, REITs, and real estate agents with the tools they need for success in this dynamic environment.

The journey through REIT strategies, diversification, and risk management reflects a landscape of change and potential. By embracing these strategies, real estate stakeholders can harness the transformative power of the market’s current state, turning challenges into lucrative opportunities and ensuring robust growth in the years to come.

Real Estate’s Millennial Revolution: A New Market Shift

Real Estate’s Millennial Revolution: A New Market Shift

The Millennial Shift: How Young Homebuyers are Reshaping the Real Estate Market

Exploring The Real Estate Market Switch: The Millennial Shift

Hands placing a 'SOLD' sticker over a 'For Sale' sign in front of a residential property, symbolizing the successful real estate transactions facilitated by our company, leveraging innovative blockchain technology for secure, transparent, and efficient property management and sales.


Every generation carries a unique set of values and behaviors that guide their major life decisions, including homeownership. Millennials, born between 1981 and 1996, are a generation known for their tech-savviness, social consciousness, and their deep-rooted desire for experiences over possessions. As they’ve entered their prime homebuying years, they’ve brought about a significant shift in residential real estate market dynamics. Their preferences are causing real estate professionals to rethink and reshape their strategies. This seismic shift is not only influencing current real estate practices but also setting a new trajectory for the future of the industry.

This article explores the significant influence millennial buyers exert on the residential real estate market. From their unique homebuying trends to their motivations and the industry’s adaptation, we delve into how this generation is redefining norms and expectations in the real estate landscape.

The Millennial Approach

Millennials are reshaping the homebuying process through their unique preferences, including urban living, digital use, and sustainability.

Stats Speak Volumes

Millennials constitute the largest share of homebuyers, making them a dominant force in the real estate market. Their choices are significantly impacting housing trends and prices.

Adapting to Change

Real estate professionals must enhance their digital presence, promote sustainability, and offer innovative home experiences to successfully cater to millennial buyers.

The Influence of Millennial Buyers on the Residential Market

Every generation leaves its unique footprint on the world, reshaping industries and societal norms in countless ways. The millennials, also known as Generation Y, are no exception. Born between 1981 and 1996, this cohort is influencing numerous sectors, including the residential real estate market. But how, exactly, are millennials impacting the housing market, and what does it mean for property management groups, REITs, and real estate agents?

First things first, let’s clarify one thing: millennials are indeed buying homes. Despite the rumors you might have heard about avocado toast ruining their chances of homeownership, millennials are currently the largest cohort of homebuyers in the United States. They’re not just dipping their toes in the housing market—they’re diving in headfirst.

Their entry into the market is driving up demand, particularly for homes that meet their unique preferences. And let’s face it, millennials do have their own distinctive set of requirements when it comes to their future homes. They value sustainability, technological integration, and well-located properties that offer convenience and connectivity.

What this translates into is an increased demand for energy-efficient homes with smart home technology in locations close to public transportation, amenities, or urban areas. A home isn’t just a place to sleep for millennials—it’s a lifestyle statement.

The Influence of Millennial Debt

Millennials carry an unprecedented amount of student loan debt, which inevitably influences their approach to homeownership. This generation is defying the odds by leveraging their financial obstacles into negotiation tools. Their savvy financial strategies, such as improved credit scores from student loan repayments, are shifting the dynamics of mortgage negotiations. The willingness of millennials to carry housing costs over the longer term is even influencing changes in mortgage loan structures and tenures.

The Role of Social Media in Millennial Home Buying

Millennials carry an unprecedented amount of student loan debt, which inevitably influences their approach to homeownership. This generation is defying the odds by leveraging their financial obstacles into negotiation tools. Their savvy financial strategies, such as improved credit scores from student loan repayments, are shifting the dynamics of mortgage negotiations. The willingness of millennials to carry housing costs over the longer term is even influencing changes in mortgage loan structures and tenures.

Millennial Impact on Housing Legislation

Millennials are not just passive participants in the housing market. As they become more involved, they’re using their voices to influence housing legislation, pushing for changes that reflect their values and needs. This section will discuss how these legislative changes could affect the market and what they mean for real estate professionals.

The Rise of the Remote Work and Its Impact on Millennial Home Buying

Remote work isn’t just a fleeting trend—it’s here to stay. And its influence on the housing market is monumental. With the need to commute significantly reduced, millennials have more flexibility in choosing where they want to live, leading to a surge in demand for homes in previously overlooked locations.

Preparing for Generation Z

While we’re still figuring out millennials, it’s crucial not to lose sight of the next generation: Gen Z. They’re fast-approaching home-buying age, and their preferences could further reshape the market. This section will explore the preliminary trends we’re seeing with Gen Z and how real estate professionals can prepare for their entry into the market.

Source: Rose Quint, NAHB’s Assistant Vice President for Survey Research.

“Millennials have strong opinions about what they want and don’t want in their home…Understanding these needs will be paramount to the success of the housing industry moving forward,”

Millennial Home Buying Statistics: A Deeper Look

To understand the scope and scale of millennial influence on the housing market, let’s dive into some numbers:

Market Share

According to the National Association of Realtors, millennials currently make up the largest share of homebuyers in the U.S., accounting for about 38% of all buyers.

First-time Homebuyers

Zillow reports that nearly half of all homebuyers are purchasing for the first time, with the vast majority of them being millennials.

Sustainable Living

A Nielsen report states that 73% of millennials are willing to pay extra for sustainable offerings. This predilection for eco-friendly living is reshaping the housing market, as developers prioritize green building practices to attract millennial buyers.

Remote Work

With 57% of millennials expecting to work remotely in the future (according to Upwork’s Future Workforce Report), demand for home offices or multipurpose spaces is on the rise.

Millennial Homebuying Trends

The characteristics of the millennial generation play a significant role in shaping their homebuying trends. Let’s delve deeper into some of these key trends.

Embracing the Digital World

Millennials grew up alongside the internet, making them the first digitally-native homebuyers. Their approach to house hunting heavily relies on online research. They utilize various online platforms, from real estate websites to social media platforms, to gather information, compare properties, and even take virtual tours before deciding on a house. Real estate professionals must ensure they have a strong online presence to capture this demographic’s attention.

The Preference for Urban Living

Millennials often prioritize location over the size of a house. They’re more inclined towards urban living, where they have quick access to workspaces, shopping centers, eateries, and entertainment hubs. This preference has led to a boost in the demand for residential properties in urban areas.

Sustainability Matters

As a generation deeply concerned about the environment, millennials prefer homes with energy-efficient features and environmentally friendly designs. They are willing to pay a premium for homes equipped with solar panels, energy-efficient appliances, and sustainable materials.

The Sharing Economy

The concept of the sharing economy extends to the way millennials approach homeownership. They are open to concepts such as co-living and co-ownership to afford a home in a place they prefer. This trend has implications for property management groups and REITs that can cater to this growing demand for shared living spaces.

The ‘experience’ Factor

Millennials view their homes as an extension of their identities and lifestyles. They’re not just buying a property; they’re buying an experience. A home is a place to entertain, work, learn, and relax. As such, properties that offer unique amenities, such as coworking spaces or fitness centers, can be highly appealing to millennial buyers.


The increase in remote work options has had a significant effect on millennial homebuying trends. No longer bound by commute times or proximity to a physical office, millennials have greater freedom to choose where they live. As a result, many are choosing to buy homes in suburban or rural areas where they can get more space for their money. This trend has seen cities previously considered “second tier” experiencing a boom in their real estate markets.

The Rise of the ‘doer-upper’

Budget-conscious and imbued with a strong sense of individualism, many millennials are more open than previous generations to buying a ‘fixer-upper’ and making it their own. Real estate professionals can leverage this trend by showcasing the potential of these homes and providing resources or contacts for renovation work.

The Reasons Behind Millennials Buying Their First Home

Understanding why millennials are buying homes can give real estate professionals crucial insight into what appeals to this demographic. A combination of factors is motivating millennials to take the homeownership plunge:

Long-term Investment

Millennials view homeownership as a significant milestone and a solid investment. They understand that buying a house can be a significant wealth-building strategy.

Control Over Living Space

Millennials prefer owning a home as it gives them freedom and control over their living space. They can customize their environment to fit their lifestyle and needs.

Preparing for Family Life

As millennials enter their 30s, many are starting families. A desire for stability and space for their growing families is motivating millennials to transition from renting to owning.

Source: Fortum Digital Services

“In the real estate market, the millennial wave is more than a trend – it’s a transformation. Understanding their preferences isn’t an option; it’s a necessity for future success.”

Adjusting to Millennial Buyers: Tips for Property Management Groups, REITs, and Real Estate Agents

Now, here comes the million-dollar question: how can property management groups, REITs, and real estate agents adjust to these millennial homebuyers? It’s no small task, but with the right strategies, it’s entirely possible.

Understand and Embrace Technology

Did we mention that millennials are tech-savvy? This point can’t be overstated. Millennials grew up with technology and expect it to be integrated into all aspects of their lives, including the home buying process. This means leveraging digital tools for communication, using online platforms for property listings, and even offering virtual tours of properties.

Real estate agents should have a strong online presence, as millennials will often look for reviews and recommendations online. REITs and property management groups can also benefit from leveraging PropTech to streamline their operations and provide better service to their millennial customers.

Prioritize Sustainable and Smart Home Features

Sustainability and smart technology aren’t just buzzwords for millennials—they’re prerequisites. Millennials are more likely to invest in homes that are energy-efficient, have a reduced environmental impact, and are equipped with the latest smart home technology.

Emphasizing these features in property listings and marketing materials can help attract millennial buyers. For REITs investing in residential properties, prioritizing these features can add significant value and appeal to their portfolios.

Location, Location, Location… and Lifestyle

We know that location is a classic real estate mantra, but for millennials, it’s about more than just the physical location of a home. It’s about the lifestyle that location facilitates. Proximity to amenities, workspaces, recreational activities, and public transportation is often just as important to millennials as the property itself.

Property management groups and real estate agents should focus on promoting the lifestyle benefits of their properties, not just the features of the home. And for REITs, investing in well-located properties that align with millennial lifestyle preferences could yield substantial returns.

Your Marketing Partner in the Millennial Era

Change can be daunting, especially when it involves an entire generation shaking up the traditional rules of the real estate market. But with change comes opportunity. And the opportunity here is to tap into the millennial homebuyer market, which is poised for substantial growth in the coming years.

But you don’t have to navigate this new landscape alone. Our marketing company has extensive experience and a deep understanding of millennial preferences and behaviors. We leverage cutting-edge digital strategies to ensure your properties are seen by the right people, in the right places, at the right times.

In the era of millennial homebuyers, we can be your trusted partner, guiding you through the market’s twists and turns with expert advice and innovative marketing solutions. So whether you’re a property management group, a REIT, or a real estate agent, we can help you connect with millennial buyers and turn their homeownership dreams into a reality.

The humor you find in this article is like a perfectly staged home – subtle but pleasing. Millennials might be “killing” various industries, but they’re breathing life into the residential real estate market. So next time you hear a millennial joke, remember this: they might prefer avocado toast over a steak dinner, but they’re taking big bites out of the housing market.

Remember, the millennials are coming (for your real estate) – it’s time to roll out the welcome mat.


As the millennial generation continues to reach their prime homebuying age, their preferences and behaviors will play an increasingly important role in shaping the residential real estate market. Real estate professionals who can adapt to these new trends will not only be able to tap into this influential market segment but will also be well-prepared for the evolving real estate landscape of the future.

There you have it – an in-depth exploration of “The Influence of Millennial Buyers on the Residential Market”. The aim of this post was to shine a spotlight on this transformative generation and the unique ways in which they’re reshaping the housing market. As we’ve seen, these changes are not only significant but are also setting a new trajectory for the future of the industry. Remember, if you want to connect with these pioneering homebuyers, you need to speak their language and walk in their digital footsteps. And if all else fails, try a bit of avocado toast-themed humor. After all, who can resist a good avocado toast joke?

In the ever-evolving landscape of the real estate market, keeping a finger on the pulse of changing demographics is crucial. We hope this insight helps you better understand millennial homebuyers, equipping you with the knowledge to adjust your strategies accordingly. Stay tuned for more updates on the real estate market, as we continue to provide you with the most relevant insights. Because at Fortum Digital Services, we’re not just about keeping up with the trends – we’re about setting them.