In the UK, many commercial property investors have already headed for the exit. For example, shares in the UK Commercial Property REIT (real estate investment trust) stand at a 49 per cent discount to the value of its net assets. The price of a piece of commercial real estate, by contrast, relies more on its desirability as a place to shop or store stuff – it is also much more difficult to sell a building than a share. Jason Hollands of Bestinvest says: 'If you are an investor in an illiquid asset class such as commercial property, this is going to be a very uncomfortable time.' Laura Elkin, manager of the AEW UK REIT, says: 'Our current portfolio is robustly positioned to withstand the challenges presented by current conditions.'

Source: Daily Mail October 22, 2022 16:31 UTC