We are launching our new subscription service on US commercial real estate by outlining six key calls that we believe will shape the sector’s story in the coming years. The macroeconomic environment of low, but steady economic growth, alongside a prolonged period of low interest rates will support demand for the asset class. We expect strong investor demand to nudge property yields lower in the next couple of years, which will see real estate outperform US equities and Treasuries. Moreover, all-property total returns of around 7% p.a. over the next five years will compare favourably to both the UK and euro-zone. While the retail sector is set to fare poorly, industrial and apartments will perform well. Offices are forecast to see moderate returns, with San Francisco and Los Angeles outperforming.
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