There are still some "exciting investment opportunities" to be had in the commercial property sector.
This is according to Rob Martin, head of research and strategy at Legal and General Property.
Speaking at the groups Fundamental's briefing, Mr Martin explained where he believes the best investment opportunities
are to be found.
"A recovering economy, albeit gradually, with low levels of new commercial property space being built, points to demand and rental growth focusing on the best quality assets," he said.
"A number of factors are currently favouring occupier markets in London and the South East. That balance is likely to lead to greater price differentiation with lower returns for lower quality assets."
The property expert added that high-occupancy levels are likely to remain among modern and well-located retail assets.
However, poorer quality retail stock is predicted to experience weak demand and falling rents over the course of the next few years.
- Monday 16 May 2011