There's a million flavors of REITs out there, and there might not be anywhere to hide for a while.
We're watching local commercial real estate for small businesses take a huge dive. The businesses are, uhm, "going out of business" after their rents were being jacked up by 2007's euphoria, and now the vacancies are opening up. Our taekwondo dojang is moving to a space that's nearly double our two old dojangs put together yet, including utilities, at the same net cost and with a long-term lease. His current landlord is raising the rent 25% and isn't interested in negotiating.
I fear that public-storage REITs are also headed for trouble as indebted homeowners walk away from their stuff.
Maybe the best that can be done right now is to look for closed-end REITs selling at a healthy discount to NAV.