Investing in commercial property is never without risk. As it provides financial security over the long term in many cases, it can be a good way to invest your money.
This asset class hasn’t always been straightforward. However, in 2008, during the financial crisis, prices fell by an almost unbelievable 44% overnight. Since then, the commercial property market has largely recovered and become, once again, an attractive investment opportunity.
From 2013 to 2015, investment returns from this asset class were over 10% on average. Portfolio diversification is one of the reasons behind this increase in commercial property investment.
Portfolios that contain commercial property are likely to be less volatile, as the returns are unconnected from those made from bonds and equities.