Fall/Winter 1990, Vol 15, No 2

Abstract: The institutional commitment to real estate equity investments in ‘core properties’ most likely will continue to garner only the average returns generated by similarly diversified real estate portfolios. In order to overcome the herd mentality and gain returns superior to other portfolios, diversification into various real estate market sectors must occur. This article provides a simplified approach to classifying real estate equity investments involving three dimensions – product type, location and life cycle stage – which offers a framework for obtaining real estate market knowledge.