Diversification is seen as a core principle of portfolio management that helps to minimize overall risk and potentially provide investors with a higher overall blended return. Modern Portfolio Theory advocates a 10% - 20% allocation into hard assets, such as real estate, as a way to potentially increase returns while also helping to reduce overall risk. However, the principle of diversification doesn’t stop at the point of a real estate allocation; it can also apply within the real estate allocation itself. Diversification within a real estate portfolio can be achieved, but it requires an understanding of the different levers you can utilize to help diversify. In this article, we explore those levers and highlight the various ways to utilize them to help assemble a well-diversified real estate portfolio.