UK commercial property update and outlook
Commercial property returns continue to be exceptional but eased back slightly in January and again in February this year. This comes as investors eye the inflationary environment and expectations of higher interest rates set against a highly uncertain economic backdrop littered with various downside risks. Nevertheless, the continued weight of global capital is under pressure to be invested before yields dip that final bit further and debt financing becomes more expensive. This calls for some aggressive assumptions on performance but in this market anything seems possible.