Author: Glenn R. Mueller and Barry A. Ziering

Start Page: 375
End Page: 386
Volume: 7
Issue Number: 4
Year: 1992
Publication: Journal of Real Estate Research

Abstract: Previous work on real estate portfolio diversification by location began with geographic region diversification and moved to economically defined regions (a combination of economics and geography). This work takes the next step by removing the arbitrary geographic restriction and looking at the local economic drivers of individual metropolitan areas as the key determinant for more efficient diversification. The results show that economic diversification can be a more effective diversification strategy than previously used strategies that have geographic constraints.