US commercial property 'attractively priced'

US prime commercial property is attractively priced, according to DTZ's Fair Value Index.

The nation was given a "hot" rating of 89 on a scale of zero to 100, compared to Europe's "warm" 49 and the UK's "cold" 38. Asia Pacific was also deemed "hot" with a rating of 67.

This suggested that commercial property in the US is more attractively priced on a five-year horizon than other regions.

"The indices are based on a quantified assessment of whether pricing in 180 individual markets (defined by city and sector) is attractive to investors, and signal to investors which regions and sectors offer the best value," DTZ said.

Any regions rated "hot" are those where properties are valued at least five per cent below fair value over the five-year time frame.

Earlier this month, Capital Economics tipped France and Germany as hotspots for commercial property investment, saying they stand out in terms of economic conditions and pricing.
 

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