REITs IN DOCS' OFFICES

New York Times

A so-so economy coupled withthe chance that commercial realestate may languish with the economy,has encouraged some real estateinvestment trusts (REITs) to take adifferent slant on their property mix,investing in medical offices and otherhealth care facilities. According to arecent report, therationale is that doctors tend to staylonger than commercial tenants andare not as likely to default.

Medical office rents are also lesslikely to tumble if the economy goessour again. And while the lethargiceconomy has sent occupancy ratesin commercial office buildings intoa slump, many medical office propertiesare close to being fully rented.A real estate trust that has diversifiedinto the medical office field isGreat Lakes REIT (630-368-2900;www.greatlakesreit.com), which hasadded 8 medical-office buildings inthe Chicago area to its holdings.Another active REIT firm is WindroseMedical Properties Trust (615-377-8607; www.windrosempt.com),with a $63-million portfolio.