The diversification issue became a central focus of the conference's capital markets session, which featured Southland real estate players Robert Campbell of CT Realty Corp., Michael Hayde of Western National Group and Steven Layton of Layton-Belling & Associates. The three-member panel, which was moderated by Stephen Duffy of Ernst & Young LLP, gave the session's 200-member audience a variety of perspectives when it came to the subject of diversifying portfolios.

Campbell weighed in first, saying a mixed portfolio seems to be the way to go in today's rapidly shifting market. "We're very diversified," Campbell said of CT Realty, where he serves as president. "We probe into areas and then back off quickly." He added that starting up in today's market as a single product company seems like a very difficult endeavor.

His remark drew a lighthearted retort from Western National CEO Hayde, who said, "Thank God I'm in a single product." Of course, his company has had nearly 30 years of practice. According to Hayde, Western National plans to stick with what it knows best, as it has no plans to branch out from its sole focus of multifamily product.

Layton-Belling & Associates, on the other hand, has recently changed both its product focus and capital source. "We decided a year ago to try and fortify the company and find a new source of funds as a longer-term program," said Layton, who is a principal at the firm. "We decided that industrial was a good, long-term defensive hedge against the highs and lows of the market," he added. Layton's company, which just closed its new fund, is now looking to acquire industrial core and core plus properties with five to seven-year holds.