Oregon 30-Hour Real Estate Law Practice Test

Which asset is most likely to be part of Bridget's equity REIT investment portfolio?

1. High-rise office buildings

2. Retail shopping centers

3. Single-family homes

4. Industrial warehouses

The correct answer is: Retail shopping centers

Bridget's equity REIT investment portfolio is most likely to include retail shopping centers because equity REITs typically invest in income-producing real estate properties and derive their revenue primarily from leasing space and collecting rents. Retail shopping centers represent a significant portion of the commercial real estate market, making them a common choice for equity REITs seeking to generate steady cash flow from long-term leases. While high-rise office buildings, single-family homes, and industrial warehouses can also be components of an equity REIT's portfolio, retail shopping centers specifically offer a diverse range of tenants, from local businesses to national chains, which can provide a reliable income stream. The versatility and potential for growth in rental income from retail spaces make them a strategic investment choice within equity REITs.