Industrial real estate investments can be a good bet even in a slow economy, many experts believe. Even when a down housing market stalls profits for traditional residential real estate investment trusts, industrial REITs continue to thrive. An industrial real estate trust manages shares in such properties as bulk warehouses, self-storage units, light industrial facilities and goods distribution centers. Industrial real estate investment companies profit from several key factors, including rising exports pegged to a weak dollar, imports of low-cost foreign goods for discount retailers and shrinking storage space at major ports.

Participating in an industrial REIT, as with any real estate investment trust, means you receive dividends on the profits made by the real estate investment companies, which receive tax benefits by operating as a trust. To make the most of industrial real estate investments:

1. Choose to do your industrial real estate investment close to home by picking trusts that specialize in smaller U.S. facilities.

2. Take a risk by investing with industrial REITs that deal in larger global markets.

3. Keep up with the movement in volatile industrial real estate investments.

Action Steps
The best contacts and resources to help you get it done

Stay safer with more conservative industrial real estate trusts

Smaller, more conservative industrial real estate trusts that operate in growing U.S. markets might be the safest investment option in a volatile economy. These industrial REITs often specialize in self-storage units and warehouses that sign long-term leases and are less subject to market fluctuations.

I recommend: PS Business Parks, a REIT that spun off from Public Storage, maintains a conservative investor policy that maximizes profits by concentrating on flexible industrial and commercial spaces. Cobalt Capital Partners acquires and develops light industrial properties in growing U.S. hub areas such as Atlanta, and offers two industrial REITs.

Choose larger firms for more aggressive but riskier industrial real estate investments

The bigger the risk, the bigger your return might be with industrial REIT investments. However, the losses can also be proportionally great. If you can tolerate risk, go with the larger, more aggressive industrial REITs that have had to cut back a bit in light of global economic crunches, but might be poised for a turnaround.

I recommend: AMB Property Corporation is a leading developer of industrial real estate, including hub and gateway distribution centers, around the world. First Industrial Realty Trust, a leader since 1994, manages over 100 million square feet of space in 30 North American markets across the supply chain spectrum.

Watch the news to identify industrial real estate investment opportunities

When you are watching the market, add a view of the real estate investment trust movements to see if you could use a REIT to help diversity your portfolio. After you begin adding REITs to your strategy, you will need a good source to keep up with your investments.

I recommend: IN Realty focuses exclusively on reporting news and the markets surrounding industrial real estate trusts. Inform is a great source of up-to-date news about the industry and the market, emerging issues and new REITS coming on board.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Talk to your current financial advisor for information on which industrial real estate investment trusts are performing well.