Why the outlook for commercial property remains healthy

As we approach Q4 2017, we believe commercial real estate should continue to see healthy operating fundamentals in most global markets amid solid economic growth, steady job creation, reasonable new supply levels, and monetary conditions that are likely to remain accommodative even as stimulus is withdrawn.

In general, we anticipate that the demand for commercial real estate in the US will outstrip new supply across most sectors, driving rents and REIT cashflows in the coming months, although supply is accelerating in some areas. Third Avenue's Dobratz: How we took advantage of Brexit 'dislocations' in UK property market In light of current valuations and expected growth rates, our US allocation is positioned in favour of sectors that we believe stand to benefit most from faster growth, such as urban apartments, single family homes, and manufactured homes. Data centres' growth prospec...