You can't solve the problem with the system that created it. If people do the same thing the same way every time, you're going to get the same result. Changing the paradigm, offering new products that heretofore have not been actively marketed; it gives the investors lots of choices and we're seeing a very positive response from them.

GlobeSt.com: Have you seen any sectors that are more sought after than others, right now?

Schorsch: Yes. We're seeing both our healthcare and our net lease product--one net lease being mostly investment grade, all single-tenant, high-credit quality--they're seeing demand because of the strong yield aspects and that they have good, solid growth; particularly when the healthcare sectors has embedded growth because of the aging population and with the medical office space. We're seeing a lot of interest in our net lease REIT because we have such a high investment grade credit component and those assets historically have not been available, so that's a unique feature to that.

But we're also seeing a lot of demand for our New York Recovery REIT, which is all about buying some Manhattan office and retail; we're seeing good strong demand for that. It gives people a blend to their portfolio and some very strong demand for our mortgage REIT--which is called UDF--because people want yield and that's where you're going to get yield. It's first mortgage, it's not mezzanine or anything like that.

But we're bringing these to market based on the fact that we're getting demand through the advisors for these type of products, so we're listening to what the advisors are saying and it's causing us to modify our pipeline of products, rather than us putting out a product and then saying, "We're hoping we sell it."

GlobeSt.com: Are you seeing a lot of non-traditional investors?

Schorsch: A lot of what we see these days are people who are not currently investing in REITs at all; they're fixed-income buyers. We're seeing a switch because the fixed-income buyers are looking for yield. And we're also seeing people from the stock market. There's a lot of money moving negatively out of the stock market. People are coming out of the large cap into real estate, which is a little less risky with a higher current yield but less upside. So they're picking yield over cap appreciation. It's a fundamental shift in the type of investor.

GlobeSt.com: How do you see products playing out over the next two years or so?

Schorsch: I think you're going to see more products, you'll see more choices.

GlobeSt.com: Diversification of what's coming out?

Schorsch: Absolutely, I think they'll be less and less people going with singular names and they're going to go with bigger concepts. Historically, publicly-traded REITs have a total market cap of $400 billion, less than that. That's about the size of Exxon. All 106 of the REITs are the size of one multinational. That's not a huge market. And they own about $1 trillion of assets. So that's 15% of commercial real estate in the US. So the other 85% is owned by the funds, by the retirement plans, the endowments, the insurance companies, etc.

We're seeing a general trend for non-correlation. People want to buy real estate for the same reason institutions want to buy real estate: They want to have an uncorrelated asset. They don't want to be in just another equity that moves. If you look at the Morgan Stanley REIT Index and the S&P, you'll see that they correlate in '05, 06, 07, identically. They go up and down together, because they're in the index funds. If you buy the S&P, you're getting REITS. So the REITs work. They trend with the stocks.

GlobeSt.com: People are getting closer to their investment.

Schorsch: All these things have decoupled; they're all working independently. And people who buy real estate are buying it for their specific attributes. They want to buy hard assets, so the non-traded REITS and the funds and all the other derivatives are out there for them to look at. And we find the more products we offer, the more potential clients that look at it. They say, "I don't like office or I don't like hospitality, but I like malls, I like industrial real estate. I like net lease." They find something that resonates. Yes, choices are definitely on the rise. We think there will be 30-40 companies over the next five years that will come into this space over multiple sectors. And we think that's very positive for the industry, it broadens the industry.