Investing for Diversification

Historically, institutional investors have made real estate investments in order to diversify their portfolios and increase real estate assets. Many financial advisors recognize the key to building balanced, well-constructed portfolios for their investors is asset allocation. With a diversified portfolio, some assets may decrease in value while others increase in value. Within the real estate portion of a portfolio, there is opportunity to diversify by property type, geographic location, long-term and short-term investment structure and type of property ownership arrangement.