What are the prospects for commercial property?

Investors have seen a remarkable recovery in property market conditions over the past 18 months. The UK commercial property IPD index peaked in August 2007 and subsequently fell by more than 35%, bottoming in July 2009. Lending markets almost completely closed in some areas and, at the same time, demand from tenants was weak. UK property funds experienced significant redemptions prompting them to sell properties into a falling market to raise cash. From its nadir, the IPD index has recovered more than 25%, as at the end of August 2010, in a rebound that has surprised many observers. L...