Real Estate-Based Business Owners: Comparing REIT vs. TIC Proposals

There are many businesses of all sizes that are real estate-based, that is a significant portion of the assets necessary to operate the business is in the form of real estate. The list of such businesses include hotels, hospitals, senior living facilities and golf courses. Because of the ability of the underlying business to generate cash flow, these types of assets have attracted significant interest from real estate investors looking for a higher return than they are able to realize from the typical apartment building or triple net office investments. Conversely, the owners of these businesses for a variety of reasons may want to take their equity out of their real estate assets, or at least get such assets and their accompanying liabilities off of their balance sheets. However, they do not want to give up control of their real estate, and they want to continue to operate their business on it.