Which type of property might a REIT typically invest in?

A REIT, or Real Estate Investment Trust, typically invests in a diverse range of property types, and commercial real estate is a significant focus within its investment strategy. The correct choice highlights that REITs often engage in investments across various sectors, including warehouses, hotels, office buildings, and retail spaces, among others. This diversification allows REITs to generate income through rent and management fees, while also mitigating risk by not relying on a single type of property.

Investing exclusively in residential homes, as mentioned in the first option, does not encapsulate the typical strategy of most REITs, as many focus on a mix of property types. Additionally, while some REITs may concentrate on industrial properties, the limitation to "only" industrial properties does not represent the full range of typical REIT investments. Vacant land is sometimes included in long-term strategies but is generally not a primary focus for REITs, which prefer income-producing assets. Therefore, the choice reflecting investment in commercial real estate like warehouses and hotels stands out as the accurate representation of typical REIT property investments.