This year, I have taken to asking people whether their focus on performance benchmarks is more, less or about the same as it was in the past. The results were (a) less focus on benchmarks: 0, (b) about the same focus: 1, and (c) more focus on benchmarks: everyone else.

In this column, I am going to examine some of the implications of the trend toward more focus on benchmarks, and identify some areas where increased benchmark focus can either create additional risk for an investor or create unanticipated incentives to act in ways that do not necessarily support the ultimate objectives of an institution.

Any number of good reasons exist to include benchmarks as part of the evaluation of a real estate investment portfolio. Space limitations preclude a more even-handed description of pros and cons. Rather, this column will highlight some of the “cons” in a market where the pendulum clearly is swinging heavily toward the use of benchmarks to review investment performanc