Diversify with commercial property

property

Equities and commercial property have a low correlation so the inclusion of both in a portfolio is a good way for investors to achieve diversification

The relationship between equities and commercial property may, at first appearance, seem like a misnomer. In most people's minds they have, in fact, very little in common. Traditionally, investors have only been able to invest in direct property, which historically has had a low correlation with equities. The main reasons for this are that property and equities have different market drivers and tend to attract different investors for different reasons, and at different times in the economic cycle. However, the recent rise of indirect property investments, by way of property securities, has ...