Experts see industrial REITs as being particularly strong,...

Experts see industrial REITs as being particularly strong, followed by office, residential and retail.

"You're buying the prospect of recovery--stability first, then recovery," says Peter Slatin, editorial director at Real Capital. "These companies, for the most part if they're well managed and have a strong balance sheet and can manage upcoming debt securities, they are poised to weather the storm."


It's not a play I'm looking to go into for a month or two. Over the next several years there will be opportunity in REITs," says Joe Heider, president of Dawson Wealth Management in Cleveland, which manages more than $400 million in assets.

"The market did oversell, and if you look at the replacement costs, the net asset value of these individual REITs, and roll them up into a portfolio, that is where the opportunity is.

There also has been an important economic trend that has fed into enthusiasm for REITs: Growing optimism that the economy is improving--so much so that inflation could be the next significant problem. Real estate is generally seen as an effective hedge against inflation as property values increase.