Commercial property returns all-time high

Across all sectors, industrial and large format retail are at the top of investors’ wish lists.

Total returns for industrial property tipped 21.8% over the year to March, the highest total recorded since the inception of MSCI’s industrials index in 1994.

The other standout performer over the year has been the large format retail sector. Over the year to March, the sector generated total returns of 22.4%, the highest recorded by MSCI.

The latest data from MSCI shows record low interest rates have escalated the competition for higher yielding property assets leading to yield compression, lifting values and, in turn, total returns.