i can see some people bailing on REIT's if bond yield's go to 3% as that is close to the dividend % of some high quality (expensive??) REIT's.  If 3% for a specific investor is deemed acceptable then why take on risks if a bond can get you similar return?  However, REIT's also have the ability to grow their business and increase distributions.  i guess it depends on the main investing objective and the time horizon of the individual.  for myself if REIT's do sell off due to rising interest rates/bond yields i'll add some to my portfolio.