As equity markets continue to sputter along at an uneven pace, an increasing number of investors have begun to look at alternative investment vehicles in an attempt to help manage volatility as well as to potentially generate more steady and predictable income. One such alternative investment over the years has been commercial real estate, which during the economic booms of the late 90s and early 2000s was an attractive asset class to many.

A vehicle that allows investors to gain exposure to commercial real estate is the non-traded real estate investment trust (REIT). Over the past several years, however, non-traded REITs have gained a questionable reputation, causing many investors and wealth managers to shy away from them entirely. Undeniably, there have been specific players within the non-traded REIT industry that have earned that poor reputation, having not performed well in terms of returns, transparency and disclosure. That said, investors and wealth managers should still consider non-traded REITs for the following key reasons:

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