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Looking for value in real estate? Cue commercial landlords

Commercial property groups are gearing up to increase acquisitions in the hope value will emerge post-pandemic
Looking for value in real estate? Cue commercial landlords
  • Commercial landlords look to increase acquisition spending over the coming months
  • Investment has already flooded into the logistics market as rental values have risen
  • The office sector may provide the most compelling value

After disposing of around a fifth of its assets last year, Schroder Real Estate Investment Trust’s (SREI) cash buffer saw it through rent defaults in the face of the pandemic. But now the commercial Reit’s manager and Schroders’ global head of real estate, Duncan Owen, wants to put some of that cash to work in the office investment market. “There’s still a gap between some asking prices from owners and what we’re prepared to pay, but we think asking prices are going to come lower,” says Mr Owen.  

Mr Owen is not alone. Commercial property groups are gearing up to spend on acquisitions in the hope value will emerge in the wake of the pandemic. 

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