Industrial REITs: How They Work and Where to Find Real Returns

When you think of real estate, you might picture apartments or office towers—but industrial REITs, real estate investment trusts that own warehouses, distribution centers, and manufacturing facilities. Also known as logistics REITs, they’re the backbone of online shopping, delivering packages to your door every day. Unlike residential or retail properties, industrial REITs don’t rely on foot traffic—they thrive on supply chains. And with e-commerce still growing, these assets are in higher demand than ever.

These REITs own warehouse spaces, large, high-ceiling buildings designed for storage and quick shipment, often near ports, highways, or major cities. Companies like Amazon, FedEx, and Walmart lease these spaces long-term, paying rent that’s usually locked in for 5 to 10 years. That means steady income for investors—even when the stock market swings. REIT dividends, the regular payouts these trusts are legally required to make to shareholders, often pay out 3% to 5% annually, sometimes more. And because these buildings are essential to global trade, they rarely sit empty.

What drives their value? Location matters more than you think. A warehouse near a major port or rail hub can rent for double what one in a remote area can. Technology plays a role too—modern facilities with automated loading docks, solar panels, and high-speed internet attract better tenants and higher rents. But there are risks: interest rate hikes can hurt all REITs, and overbuilding in hot markets can flood supply. Still, when you pick the right ones, industrial REITs offer a rare mix of steady income and long-term growth.

You’ll find these assets in many of the posts below—from how rent growth in logistics hubs affects returns, to how regulation and inflation shape their performance. Whether you’re just starting out or looking to rebalance your portfolio, the picks here cut through the noise and show you what actually moves the needle in industrial real estate.