Risks & Suitability Considerations of Non-Traded REITs

Non-traded REITs are unique investments that offer many potential benefits to individual investors, including:

In addition, REITs act as an asset with low correlation to other traditional asset classes, which has the potential to enhance portfolio return while reducing risks.

However, non-traded REITs also have unique features that may make them unsuitable for some individual investors.

Other risks that are common to non-traded REITs, traded REITs, and every other type of equity investment include market cycle risks, leverage risks, and manager/advisor skill risks.


It is essential to understand the risks associated with non-traded REITs, when non-traded REITs may be unsuitable, and ways to mitigate and reduce risks for an investor’s portfolio when using non-traded REITs.