With interest rates set to remain lower for longer, real-estate investment trusts (REITs) have become prey in the global hunt for yield, said Sheila Patel, CEO of International Goldman Sachs Asset Management.
"The number one thing that has been concerning clients all year, underlying everything, has been the low yield environment," she told CNBC's "Squawk Box." "People have looked look to REITs as a source of yield when the bond market hasn't been able to provide it."
REITs are investment trusts which own properties, such as apartment buildings, shopping malls, student housing or warehouse space, and then pay out most of the rental income as dividends for investors.
The bond market certainly hasn't been cooperative with investors seeking income.
The benchmark 10-year Japan government bond was yielding around a negative 0.226 percent on Monday, while the German 10-year bond was at negative 0.003 and the U.S. 10-year Treasury yield hovered around 1.556 percent.
That compared with the Vanguard REIT exchange traded fund (ETF), which tracks the MSCI U.S. REIT Index and holds around 150 stocks, yielding around 3.55 percent.
There are other reasons to look to REITs, in addition to a pick-up in yield above the bond market, Patel said.
"On a global basis, I think real estate is quite interesting, but the REIT space particularly because people need liquidity these days," she said. "The market's moving too fast, so sometimes some of the direct investing funds are more difficult."