A recent article in the FT highlighted the continuing importance of commercial real estate to the US economy (which in turn draws parallels with the UK economy).

Many see 2024 as a potential turning point in a difficult market with the public markets having already priced a lot of stress, leaving opportunities.

In particular the article highlights three key asset classes (although it does point out that returns differ by market type and area):

Senior Living - it identified huge demand for an ageing population, and in particular “the impending wave of baby boomer retirements”

Necessity Retail - high traffic supermarkets in well off areas.  In particular this was unlikely to soften given the increase in people moving to the suburbs

Data Centres - to help support the “Netflix Generation”.

Time well tell whether these asset classes continue be a good investment (although anyone who has invested in these in the last 5 years is likely to have achieved good returns)