The higher inflation environment of recent years has curtailed the supply of new commercial property at the top end of the market, and that is likely to boost returns despite wider uncertainty.
This is according to investment manager Matt Jarvis, who runs the £1.1bn L&G Property fund.
The reputation of open-ended property funds in the UK has been blighted in recent years by a number of such products being forced to suspend redemptions as a result of liquidity concerns.
Investor sentiment was further dented as higher bond yields reduced the appeal of the income generated from commercial property, higher interest rates increase the debt servicing costs of the property owners, and markets questioned the future of commercial property in a world where remote working has become more commonplace.
The fund manager said the prices of some higher quality offices have fallen by 25 per cent below the previous peak.