Thank you for sharing!

Your article was successfully shared with the contacts you provided.

LONDON-Property now outperforms all other UK asset classes over one, three, five, ten and 15 years, according to the latest Baring Houston & Saunders Property Report. And given this and the recent volatility of the equities market, an increasing number of institutional investors are reviewing the structure of their portfolios and increasing their allocation to the property sector, with some investing in the sector for the first time.

Within the property sector, BH&S warns that rising vacancy rates and the expected peak in development completions next year mean that exposure to Central London Offices should be minimised. The same applies to offices along the M4 corridor which are still suffering from the distressed state of the telecoms and computing market.

The retail sector is currently providing the best performance, but BH&S warns that should interest rates rise, retail sales are likely to slow making the sector considerably less attractive. The broker highlights industrial property as the sector with the most potential: vacancy rates should moderate within six months and the increase in manufacturing output should improve demand.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.