Office REITs invest in office buildings and earn income by leasing space to businesses and professionals. The success of these REITs depends on several factors, including the location and quality of their properties, the economic health of the region, and the stability of commercial tenants. Office REITs are particularly sensitive to business cycles as economic downturns can reduce demand for office space.

Industrial REITs focus on industrial facilities such as warehouses, distribution centers, and factories. These properties are pivotal in the supply chain and e-commerce sectors, driving demand for logistics spaces. Industrial REITs benefit from trends in online shopping and global trade, often showing resilience during economic shifts.

Hotel REITs own and operate hotels and resorts, deriving revenue from accommodations, dining, and other services. The performance of hotel REITs is highly susceptible to the state of the travel and tourism industry, making them more volatile as they react to economic changes, seasonal patterns, and consumer preferences.

Healthcare REITs invest in properties such as hospitals, nursing facilities, medical offices, and retirement homes. These REITs tend to offer stable returns due to the essential nature of healthcare services and an aging population. The demand for healthcare-related real estate is somewhat shielded from economic downturns, providing a resilient investment option.

Retail REITs own and manage retail spaces such as shopping centers, malls, and freestanding stores. The revenue of retail REITs comes from renting space to retailers. These REITs are closely tied to consumer spending habits and the economic environment, facing challenges from shifts in retail, such as the rise of e-commerce, which influences the physical retail landscape.