RT Journal Article SR Electronic T1 Why Real Estate? JF The Journal of Portfolio Management FD Institutional Investor Journals SP 12 OP 21 DO 10.3905/jpm.2005.593883 VO 31 IS 5 A1 Susan Hudson-Wilson A1 Jacques N. Gordon A1 Frank J. Fabozzi A1 Mark J.P. Anson A1 S. Michael Giliberto YR 2005 UL https://pm-research.com/content/31/5/12.abstract AB Real estate for institutional investors is most broadly defined to comprise private commercial real estate equity, private commercial real estate debt, public real estate equity structured as real estate investment trusts or real estate operating companies, and public commercial real estate debt structured as commercial mortgage–backed securities. Arguments made in a 2003 Special Real Estate Issue of this Journal for adding real estate to a well–managed institutional investment portfolio include: portfolio diversification and risk reduction, absolute return enhancement, inflation hedging, reflection of the investment universe, and strong cash flows. A revisit of these portfolio issues and an updated empirical analysis continue to support the rationale for real estate. Particular challenges face institutional investors who invest in real estate; the articles in this 2005 Special Real Estate Issue address them.