Fund management groups are increasing their forecasts for commercial property yields in 2005.
According to Scottish Widows Investment Partnership, yields should reach 11.9% in 2005, compared to a previous prediction of 10.5%. They believe that the main force of these returns would be increased demand for office properties, itself driven by higher service sector employment. But there may be a price to pay for out performance this year, as it could lead to less scope for yield movement next year.
Our view
For many lower and medium risk clients, commercial property funds for rental income has always been a core holding recommendation of .
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