Commercial real estate a ‘safe haven' as investors return to troubled sector

Study shows recovery in real estate prices is driving institutional investors back to sector.

A study released in mid-July by Towers Watson showed the recovery in commercial real estate prices has prompted institutional investors to re-allocate to the asset class. For pension funds, allocation to real estate rose at the expense of all other asset classes in 2010. The report also suggested commercial property is now considered a ‘safe haven’ by many institutional investors, offering steady yield and some inflation protection. The retail market, however, remains unimpressed and commercial property is still one of the worst selling of all the major sectors. In May, it saw net I...