Check Out These Hot Cali REITs - Cramer (BRE, ESS, PSB, More...)

April 9, 2010 7:27 AM EDT
As California is still in the muck, but making great strides to return to equilibrium, Jim Cramer is offering up a play on the recovery in the commercial real estate sector.

Cramer focuses on REITs, highlighting BRE Properties (NYSE: BRE), and Essex Property Trust (NYSE: ESS). BRE gets 83% of its revs from California and has a 4% yield, and ESS about 81% with a 4.3% yield.

Continuing, smaller REITs that could see some upside potential are Macerich (NYSE: MAC) and Regency Centers (HYSE: REG). MAC has a 6% yield, and REG operates many smaller properties.

On his watch list, Cramer has PC Business Parks (NYSE: PSB) because it looks like its seeing strong occupancy gains at commercial properties.

Overall, though, Cramer really emphasizes Kilroy Realty (NYSE: KRC) as it is 100% based in California, has a 4.3% yield, and has the most room for improvement.

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