Fund managers have cut their allocations to commercial real estate to their lowest level since the 2008 global financial crisis.
Bank of America’s monthly fund manager survey showed that a net 19% of managers globally were underweight the sector in May, the lowest level of exposure since December 2008.
The sentiment has changed quickly. Just last month allocations hit their highest in at least 16 years, with a net 19% of managers overweight the sector.
The survey adds to growing caution as steep rises in interest rates, falling prices and waning demand for office space following the coronavirus pandemic weigh on investor confidence.
