Learn › REIT Basics · 6 min read

Traded vs. Non-Traded vs. Private REITs

REITs can be publicly traded on an exchange, publicly non-traded, or private, and liquidity differs enormously across the three

Three structures, one tax status

Not every REIT trades on a stock exchange. All REITs share the same underlying tax status and follow the same qualification rules, but they come in three structural flavors that differ enormously in how easy they are to buy, sell, and evaluate: publicly traded, publicly non-traded, and private.

The distinction is not about safety or quality in some absolute sense; a publicly traded REIT and a non-traded REIT can hold similar kinds of real estate. What differs is the structure around the investment: how it is priced, how it is sold, and how easily it can be converted back into cash.

Publicly traded REITs

A publicly traded REIT lists its shares on a stock exchange, such as the NYSE or Nasdaq, where they can be bought and sold throughout the trading day at a continuously updated market price. Traded REITs are registered with the SEC and file the same periodic disclosures, annual reports, quarterly results, and more, as any other public company. This is by far the most common way individual investors gain exposure to REITs, and it is what most of this site's data and profiles cover. See How to Buy REITs for the mechanics.

Because the price is set continuously by the market, it can also move for reasons that have little to do with the value of the underlying buildings, day-to-day stock market sentiment, interest rate expectations, or sector-wide news can all push the price around in the short term.

Non-traded REITs

A non-traded REIT, sometimes called a public non-listed REIT, also registers with the SEC and files periodic reports, but its shares do not trade on an exchange. Instead, shares are typically sold through broker-dealers or investment platforms at a price set periodically, often based on an estimated net asset value rather than a continuous market price, and sold back to the company through a share repurchase program that may be limited in size or timing. Because there is no active market, non-traded REIT shares are generally far less liquid than publicly traded ones, and pricing can lag changes in the underlying real estate. See NAV Explained for how that estimated value is calculated.

Non-traded REITs became more common as a way to offer real estate exposure to investors through financial advisors and broker-dealer platforms, outside of the stock market entirely, though their popularity and structures have shifted over time as regulators and industry practice have evolved.

Private REITs

A private REIT goes a step further: it is not registered with the SEC at all, and its shares are typically sold through private placements, often limited to institutional or accredited investors. Private REITs generally have the least public disclosure of the three structures and the least liquidity — there is usually no ready mechanism to sell shares outside of company-specific arrangements, if any exist.

Because private REITs are not registered with the SEC, they are typically only available to investors who meet specific income, net worth, or institutional criteria set by securities law, and the offering terms can vary widely from one private REIT to the next.

Liquidity is the core difference

Liquidity is the single biggest practical difference across all three structures. A publicly traded REIT can generally be bought or sold within seconds during market hours, at a visible price. A non-traded REIT typically restricts redemptions to periodic windows, sometimes with caps on how much of the fund can be redeemed at once. A private REIT often has no standing redemption mechanism at all. This matters because it shapes how quickly, and at what price, an investor can actually convert shares back into cash if circumstances change. This is one of the most important practical questions to ask about any REIT investment: not just what it owns, but how, and how quickly, an investor could actually exit the position if needed. For a deeper comparison of all three, see Traded vs. Non-Traded: A Deeper Dive.

Fees and disclosure differ too

Disclosure and cost structures also diverge. Traded REITs face continuous market pricing and heavy public scrutiny, which tends to keep fees relatively transparent and modest. Non-traded REITs have historically carried higher upfront selling costs and fees, since they are typically distributed through broker-dealer networks rather than sold directly on an exchange, though structures vary by offering. Private REITs disclose the least to the public by design, since they are not marketed to the general public in the first place.

Anyone comparing options should read the specific offering documents rather than assume every REIT within a category behaves identically. Reading the specific prospectus or offering circular for a non-traded or private REIT, rather than relying on general assumptions about the category, is the most reliable way to understand its particular fee structure and terms. The glossary is a useful reference for terms like "redemption program" or "estimated NAV" along the way, and you can browse publicly traded REITs directly on the screener.

See it in the data: Screen publicly traded REITs →

Research and education only — nothing here is investment advice. Figures such as the 90% distribution rule are general and can change; always confirm against a company's filings.