Core Real Estate: opportunities to enhance returns and lower risk

U.S. Core Real Estate investments continue to deliver consistent total returns with a stable income component, at a relatively low risk point. Economic theory suggests steps taken to enhance core returns further would come with associated higher risk – the risk/return trade-off. New research from CBRE Investment Management indicates by harnessing the power of diversification across real estate strategies the opposite can be possible: a real estate allocation split between Diversified Core, Logistics and Credit has the potential to increase total returns, reduce risk and moderate volatility.