UK commercial property: opportunities and threats
In the latest Aviva Investors View from the Floor podcast, Chris Urwin, Andrew Hook and David Diemer explain why a more challenging market backdrop and long-term structural changes will have a lasting impact on UK commercial property.
After a prolonged period of strong returns, the UK commercial property market is about to move into an altogether more challenging phase; one where value will be harder to find and there will be clear winners and losers. Simply trying to achieve benchmark returns through a well-diversified approach may have worked in the past, but is unlikely to be so successful in future.
In this podcast, Chris Urwin, Head of Real Estate Research; Andrew Hook, Fund Manager of the Aviva Investors Property Trust; and David Diemer, Head of Institutional Direct Real Estate, explore some of the key drivers of UK commercial property and how investors must adapt to changing conditions, specifically:
- The impact of Brexit on UK commercial property;
- Long-term structural changes in the office, industrial and retail sectors;
- The limitations to traditional diversification/benchmark-driven investment approaches;
- The merits of clustering investments in key locations.
Unless stated otherwise, any sources and opinions expressed are those of Aviva Investors Global Services Limited (Aviva Investors) as at 10 March 2017. This commentary is not an investment recommendation and should not be viewed as such. They should not be viewed as indicating any guarantee of return from an investment managed by Aviva Investors nor as advice of any nature. Past performance is not a guide to future returns. The value of an investment and any income from it may go down as well as up and the investor may not get back the original amount invested.