Commercial property funds are once again beginning to grow in
popularity following an increase in recent returns.  As a
result of the positive results, the sector has been receiving some
very favourable press from various financial investors around the
UK.

Equilibrium Asset Management, a renowned wealth management
company, have already predicted that commercial property will offer
returns of over 12 per cent on investments made this year. 
Even commercial property funds - which represent the easiest entry
into the market for investors - are cited by the company as
offering potential returns of around 10 per cent (the difference
between the two is simply representative of the drag on performance
that can occur due to the cost of managing funds).

Speaking to the Telegraph, Equilibrium managing partner Colin
Lawson said:

"It's a bold prediction, but we believe commercial property will
deliver the best risk adjusted returns during 2014.

"Returns could be better than the FSTE for a fraction of the
risk.  Property is strongly linked to economic performance, so
the recent recovery in the UK is a strong 'buy' signal in my
view."

Mr Lawson recommended that investors hold between 20 per cent
and 30 per cent of their portfolio in stocks that contain
commercial property assets, though he noted that this figure was
dependant on the investor's "attitude to risk".  It should
also be noted that this figure is higher than many other advisers
might suggest.

Confidence in the market isn't limited to Equilibrium,
however.  Renowned insurance giant Aviva has issued their own
"UK Real Estate" outlook, in which it claims that returns in the
sector will be "very strong" during the next couple of years,
reaching "double digits".  The figure quoted by Aviva puts
returns in 2014 alone at being around 15 per cent.

The increasing popularity of commercial property amongst small
investors is relatively recent.  In the early years of the new
millennium, a number of major funding investors used money from
multiple minor investors to purchase commercial property such as
shops and office blocks. As the value of commercial property
increased, the ROI for the minor investors grew substantially.

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