How to access the recovery in UK commercial property

COMMENT

UK commercial property has excited yield-hungry investors and is certainly exhibiting some appealing traits.

Yield compression and rental growth have already taken hold in and around central London, with investors now looking beyond prime markets in the hope a recovery might mean the good news will spread. This demand is making property appear attractive versus other asset classes. The UK commercial property total return index is flirting with highs last seen in 2007. Average property yields, relative to gilt yields and real BBB corporate yields, are showing strong premiums. It looks like there may well be some interesting times ahead in certain areas, but there are too few sensibly position...