The real estate investment trust act authorizes

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Reference no: EM131359790

1. The Real Estate Investment Trust Act authorizes:

REITs are subject to double taxation in exchange for limited liability.

REITs are exempt from double taxation as long as certain conditions are met.

REITs are considered a form of limited partnership.

REITs are exempt from federal securities laws.

2. For most commercial property types, lease lengths can vary considerably. Therefore, both parties must tradeoff between the advantages and disadvantages associated with particular leasing terms. Owners may prefer longer leases for all of the following reasons EXCEPT:

Delay of re-leasing costs

Reduction of risk associated with declining interest rates

Stability of future cash flows

Gain flexibility

Reference no: EM131359790

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