On the recordSeptember 13, 2010
I rise today to recognize the 50th anniversary of the enactment of legislation that created real estate investment trusts, REITs. The development of real estate investment trusts is among the true success stories of American business. Moreover, REITs legislation enacted over the past 50 years presents a remarkable example of how Congress can create the legal framework to liberate entrepreneurs, small investors, and men and women across the country to do what they do best--create wealth and, more importantly, build thriving communities. When REITs were first created in 1960, small investors had almost no role in commercial real estate ventures. At that time, private partnerships and other groups closed to ordinary investors directed real estate investments, typically using debt, not equity, to finance their ventures. That model not only served small investors poorly, it resulted in the misallocation of capital, and contributed to significant market volatility. Since that time, REITs have permitted small investors to participate in one of our country's greatest generators of wealth--income-producing real estate--and REITs have greatly improved real estate markets by promoting transparency, liquidity, and stability.
