University of Washington
This article is intended to present a framework that institutional investors can use to manage real estate portfolios. It summarizes the evolution of the first and second generation of applied portfolio management, covering both under the "Holistic" label. The article presents a framework that can be used to guide the construction of traditional core private portfolios diversified by property type and economic location. It then builds on this foundation to provide a conceptual model that can be used to enfold opportunistic, global, REIT, CMBS and other exotic investment structures in a comprehensive approach.