Looking for exposure to real estate in model portfolios? It is important to know the difference between public REITs vs private real estate.
Both provide access to real estate, but they do not function the same way.
Public REITs trade on stock exchanges, are priced daily, and can be bought or sold daily. You can buy and sell them like stocks.
Private real estate relies on periodic valuations and can take weeks or months to exit.
Pay Attention to Important Differences in Structure
Public REITs are generally easier to access, easier to trade, and easier to use inside model portfolios.
Public REITs can offer:
Daily pricing transparency- Greater liquidity through public markets
- Income through required dividend distributions
- Broader access across property sectors and regions
Private real estate can also play a role, but its function is different. Private real estate can give investors exposure to rental income from actual properties. This can be attractive for investors seeking income and long-term ownership of real assets. It offers customized access to property ownership.
Public REITs and private real estate can both provide exposure to property income and long-term real asset ownership. The differences are in pricing, liquidity, transparency, fees, and portfolio flexibility.
Don’t forget that Public REIT funds and ETFs often have transparent expense ratios.
Private real estate often involves layers of fees: management fees, performance fees, acquisition fees, servicing fees, or redemption costs.
Public REITs vs private real estate should have a clear place in advisor conversations.
Real estate is not only about property selection. Share with your clients the differences in how the investment is priced, how quickly money can be accessed, how income is distributed, what fees apply, and how the allocation fits with the rest of the portfolio.
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Vert Asset Management is a registered investment adviser focusing on sustainable real estate investment that helps financial advisors build resilient, future-ready portfolios. We connect institutional-quality investments with the long-term goals of clients, focusing on both financial returns, soundness, and sustainability.
Investors should consult their investment professional prior to making an investment decision. REITs involve risks similar to direct real estate ownership, including changes in property values, taxes, interest rates, cash flow, supply and demand, and issuer management. Additional risks may include real estate market, tax compliance, interest rate, and liquidity risks. Where specific advice is necessary or appropriate, you should consult with a qualified tax advisor, CPA, Financial Planner, or Investment Manager.
