What is diversification?
Risk reduction from combining assets that do not move together: across property types, geographies, tenants/industries, and strategies or debt maturities. It manages the risks underwriting cannot, but requires scale in direct real estate.
Where you will use it: this term comes up in the Real Estate Finance course, and the full course glossary collects every term in one place.
Related terms
From the free Real Estate Finance course by Devon Coombs, CPA, MBA.