«REITs are sensitive to the economy. It isn’t so much interest rates (though that is a factor), but their ability to maintain earnings and dividends through a recession. Most REITs reduced their dividend in the last recession, and there is no guarantee that the survivors of the last will also survive the next.
We will eventually have 20% of our retirement assets invested in what I consider «income equities». I intend 10% in utilities, 5% in REITs, and 5% in the TIAA Real Estate Account, which is effectively a private (and conservatively managed) REIT.»