UK - Institutional confidence in property investment has soared over the past year, a survey by Baring, Houston & Saunders shows.
BH&S says 38% of its clients are optimistic about getting good investment returns out of commercial property in the next three years – compared to only 25% last year.
The survey also revealed large swings in popularity for individual property sectors.
Where office investments were the preferred sector of 26% last year, this has dropped to 7% this year.
BH&S senior director of research and forecasting Ian Whittock said: “The legacy of overcapacity from the 1990s will hit the City next year.
“City vacancy rates are continuing to increase rapidly and are set to peak at 15% by the end of next year leading to a 10-15% fall in rents.”
Retail and industrial properties have both benefited as a result.
Where 29% of investors named industrial property as their preferred property asset last year, the figure rose to 40% this year, likewise those stating a preference in retail property jumped from 16% last year to 26% this year.
Most respondents in this week's Pensions Buzz do not think businesses should be able suspend AE contributions if in financial distress.
Former BHS owner Dominic Chappell has lost the appeal against his section 72 conviction and sentence for failing to hand over information to The Pensions Regulator (TPR).
This week's top stories include Marsh and McLennan Companies agreeing to buy JLT, and the home secretary calling for AE to be scrapped in a no-deal Brexit scenario.
Lesley Titcomb says the watchdog wants closer interactions with pension funds to spot problems sooner and act before having to use its more stringent powers