Both own real estate and pay out most of their income. The difference is how — and when — you can get out.
Public REITs trade on an exchange with daily liquidity and market-driven prices. Non-traded REITs price periodically at net asset value, with limited, sometimes gated redemptions — trading liquidity for lower price volatility.
For the 1031 investor, non-traded REITs matter most as the destination of 721 UPREIT roll-ups, where DST interests are contributed for operating-partnership units. Public REITs rarely play that role.
Neither is 1031-eligible directly: REIT shares are securities, not like-kind property. The choice between them comes down to whether you value daily liquidity or NAV stability and income.
This article is for general educational purposes only and is not investment, tax, or legal advice, or an offer to sell or solicitation to buy any security. DST, Opportunity Zone, and other private placements are speculative, illiquid, and sold only to accredited investors via private placement memorandum. Consult your own CPA and attorney.
