Commercial property has been overlooked as an asset class over the past 15 years, moving from an average 20% institutional weighting in 1980 to just 5% today, but the recent falls in equities could see it return to popularity
Investors all too often associate investment in property with residential property. But of the £164bn of property traded last year, almost 80% was commercial. Although commonly criticised as illiquid, expensive to own and high risk, commercial property can be a viable alternative to equities, bonds and residential property. It is true that property is illiquid compared to equities and bonds as it can take between three weeks and three months to complete a transaction. The unique nature of each asset requires extensive due diligence to understand the physical and legal implications of ...
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