UBS unveils real estate outlook

In a newly published real estate outlook, UBS Asset Management outlined several key themes among property sectors that inform the company’s portfolio and property decisions.

According to the report, in the apartment sector, UBS expects some markets to be sluggish when they would otherwise be healthy and strong. The office market outlook is modest but positive, but UBS expects volatility to resume in outer years.

In addition, the industrial sector promises good performance in 2020, with lots of income growth already having occurred. And local shopping centers in good locations will offer the most attractive stabilized yield within the retail sector.

According to UBS, economic growth provides a sound backdrop for positive real estate demand but is no longer accelerating. Still, modest yields and positive property level fundamentals continue to fuel investor demand for private real estate debt strategies.

UBS cautions that if uncertainty increases, investo