Commercial property is not showing any signs of slowing down. Rental growth rose further in February, while annual total returns climbed to a level last seen in Q4 2010. Industrial remains the main driver behind overall performance, with retail also chipping in with a solid contribution. But the year will get tougher for commercial property as the economic revival slows and structural changes within sectors weigh on rental growth and limit yield compression. As such, we expect returns to reduce sharply, with further downside risk stemming from the war in Ukraine.
Long Run Outlook Drop-In (23 March, 11:00 EDT/15:00 GMT): What will be the lasting impacts of the war in Ukraine? What legacies will the pandemic leave? What does a future of higher inflation mean for economies and markets? Neil Shearing hosts this special discussion with senior economists about the long-term investing outlook on Wednesday. Register here.
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