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The Role of Logistic Real Estate in a Diversification Strategy

  • Gianluca Mattarocci
  • Dilek Pekdemir
Chapter

Abstract

Inter-sector diversification in real estate is useful when different segments of the industry show performances that are not strictly correlated. Logistic real estate shows significant differences in the income return and the capital growth that may justify the inclusion of this asset class in a portfolio diversification strategy. The chapter studies the performance of income and capital gain in the logistic sector for the European countries and evaluates the advantages related to the inclusion of this asset type in a portfolio of real estate assets. The analysis is performed by considering country biased and international diversified strategies and for both types of portfolios logistics matters for the optimal diversification strategy.

Keywords

Diversification Geographical area Type of asset Rental growth Capital growth Net return Efficient portfolios 

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Copyright information

© The Author(s) 2017

Authors and Affiliations

  1. 1.Department of Management and LawUniversity of Rome Tor VergataRomeItaly
  2. 2.Real Estate Development DepartmentIstanbul Technical UniversityTaksim-İstanbulTurkey

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