Why REITs Should Consider Third-Party Management

Wikimedia Commons/Chris Spielmann

REITs can save money by outsourcing property management services, according to a recent CBRE report. In particular, REITs with less than 10M SF in a given market can realize significant efficiencies with professional, third-party property management, reports National Real Estate Investor. When they have externally managed assets, they can have more flexibility to move capital between property types and locations. The caveat lies in smaller REITs, which can actually lose efficiency and margin due to excess capacity. [NREI]

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