A sense of relief

Recent reports of the dramatic turnaround in the commercial property market have raised the spectre of another bubble.

Previously, closed funds have re-opened as private investors flock back to the sector, at the same time as institutions, from both the UK and abroad, hunt for scarce product. The IPD capital value index shows a 4.5% recovery since the bottom in June this year, following a 45% fall. This, however, understates the sharp rise in the value of prime assets, notably retail assets with rental growth potential and central London offices. One example is the Silverburn shopping centre near Glasgow, which is rumoured at the time of writing to be close to selling for around £300m, reflecting a ne...