During the past five years, unlisted and listed indirect real estate investment products have become the primary way for institutional investors to commit capital to real estate. The exponential increase in the number of funds and vehicles available for indirect investment has paralleled the explosion of capital that flowed to the asset class.

Following the very negative returns from almost all risky assets in 2008, many pension funds that adopted a fixed weight strategic asset allocation policy will now find themselves substantially underweight to riskier assets compared to more secure assets.

As the worldwide economic downturn continues, the attention of property investors is increasingly focused on its likely impact on occupiers. This is not merely because of the growing possibility of rising levels of tenant distress and void risk, but also because of the growing need for landlords to engage with their tenants in innovative and flexible ways.