“I think as we get later cycle and as the economic cycle extends, more and more people are thinking about risk and what is important when thinking about risk in their real estate portfolio,” says Russ Appel, founding principal at the Praedium Group.
Appel continues to state that some of the traditional thinking about risk and risk mitigation has people immediately thinking diversify. He agrees there is a lot of benefit in thinking about diversification, but he explains there are a lot of ways to diversify. Normally, the immediate thought is to diversify by product type or diversify by strategy.
“One of people’s thoughts on risk mitigation, besides diversification, is focus on primary markets,” says Appel. “I think historically one of the things people thought was there is less risk in primary markets. I will tell you that when we look at demographics and migration patterns, it’s unclear to us that primary market concentration will reall
