Oxford Economics has released a new analysis indicating a significant shift in investor allocations toward the industrial sector and away from office properties over the next five years. The study highlights that the approach investors take — whether prioritizing absolute returns or risk-adjusted returns — will significantly influence their capital allocation decisions, particularly concerning the retail and residential sectors.
Key findings:
Industrial sector favored across strategies:
Both absolute return and risk-adjusted return strategies are expected to heavily favor the industrial sector. This is driven by the sector’s strong growth potential and resilience, even when accounting for risks such as climate transition.
Increased competition for high-quality industrial assets, especially in logistics hubs and near major urban centers, is anticipated to drive prices higher. This heightened focus may introduce concentration
