CHAPTER 7Technology REITs: (Contributed by Jennifer Fritzsche)
“A stock is not just a ticker symbol or an electronic blip; it is an ownership interest in an actual business with an underlying value that does not depend on its share price.”
—Benjamin Graham
While technology has become a critical element for almost every real estate subsector, much of the recent focus has been on how e‐commerce is challenging retail landlords (as detailed in Chapter 5). Now it's time to discuss the segments doing that damage: cell towers, data centers, and industrial properties. These three are at the heart of the digital ecosystem, providing critical infrastructure for the e‐commerce value chain.
As Cohen & Steers explains, “Every time you make a purchase on your smartphone or computer, it sets a sequence in motion that travels through a network of communications, data, and logistics facilities.”
Since many of those properties are owned by REITs, it's more than safe to say that they “play an integral role in getting your package from the warehouse to your doorstep, giving investors a way to participate in the potential growth of e‐commerce.” (See Figure 7.1.)
Obviously, there are other avenues to do this. But Cohen & Steers adds that the REIT way offers “some of the more attractive opportunities we see today. With consumers spending more online and organizations ...
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