Commercial property investors have enjoyed a golden age during the past five years, with double-digit price appreciation in many markets a near guarantee and risk seemingly suspended — conditions were never better and capital flowed into the asset class at unprecedented rates. Demand was so great, in fact, that several countries, including Germany and the United Kingdom, opened new property securities markets to satisfy clamouring investors.
With more options to choose from now than ever and with prices having dropped in most markets because of the credit crunch, it may be as good a time as any for investors to increase allocations to listed property or to enter the market for the first time. Of course, risks such as the fate of the U.S. economy and its effect on global growth still loom; until this question is answered definitively, listed property valuations will remain in flux. Institutional investors and their investment managers h