UK investors are increasingly investing in REITs for commercial property exposure as buy-to-let becomes less attractive, drawn by high dividend yields and recent merger activity in the sector.

UK investors are shifting from buy-to-let to commercial property REITs like Segro (AI data centers), Target Healthcare (care homes), and Tritax Big Box (logistics), which offer 8.4% average yields and must pay out 90% of profits as dividends, with recent bid activity including LondonMetric teaming with Schroder to bid for Picton and Blackstone acquiring UK REITs like Industrials Reit.