Business
How Does Leasehold Properties Affect REITs?
By Doctor Wealth  •  April 10, 2014
Some REITs have multiple leasehold properties in their portfolio which may raise a concern among investors, especially if the lease period is short. Industrial properties in particular have one of the shortest lease among all the other types of properties.

areit warehouse

The land lease here refers to the lease given by the government to the owner for use of the property, usually 99 years for residential and commercial properties. Industrial properties have usually much lower leases than 99 years.  After the 99 years are up or before that, the owners or developers will usually request for extension of the lease. The government can either extend the lease or take back the land if it needs it. As mentioned above, industrial properties have shorter leases in general than other types of properties. There used to be leases of 99 years, then 60 years, then 45 years. Going forward, it seems like the ......
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By Doctor Wealth
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