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Heightened uncertainty as commercial property returns diminish

Investment performance in commercial property has diminished over the past six months but there are still some sectors investors should consider.

Worker packing ripe tomatoes on production line in a food processing plant.
The perception that commercial property is a production line for investor profits is diminishing on the back of continued underperformance. (Image source: Shutterstock.com)

With the Australian economy showing signs of slowing down, the three commercial property - sectors – office, retail and industrial – have weakened over the past six months, bringing with it increased uncertainty among investors.

The KPMG Commercial Property Uncertainty Index, which measures the unpredictability and potential risks associated with investing in commercial property,​ has risen for all individual sectors. 

The office sector increas…

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