Property Portfolio Diversification- Across cities within the same country whose economies are specialized in different and uncorrelated economic sectors and their real estate markets have shown differential behavior through time - Across locations/submarkets within the same city whose real estate markets have shown differential behavior through time - Across different property types that have exhibited differential investment behavior paths through time - Across specialized property types whose investment performance depends on different and uncorrelated demand segments - Across different business tenants that are active in industries that have shown differential behavior during economic recessions In general, the principle of property portfolio diversification is to diversify holdings across categories of properties and locations that are most likely to exhibit differential investment performance because their income earning prospects is determined by forces whose movements through time are not related.
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