Is there a place for property in the multi-asset portfolio?

Uses modern portfolio theory and a spreadsheet optimizer to make an ex-post examination of the strategic diversification effects of including property in a multi-asset portfolio, using UK appraisal-based (smoothed) data and several derived desmoothed series. Includes an additional low-risk asset (cash) to investigate whether property's place in the portfolio is maintained. In particular, considers the significance of constraining assets to match typical institutional portfolio levels. Concludes that previously supposed benefits of including property are overstated. Property still has a place in an institutional portfolio, but the analyses should not be based simply on the use of appraisal or desmoothed data in a portfolio optimizer without applying appropriate constraints.