Rumours of a bull market may lead to disappointment

Those looking for evidence of a new bull market in commercial real estate may be disappointed by the next key portfolio valuations.
In a sector note, Nomura Real Estate analyst Mike Prew said: "The next corporate valuation evidence is due with the September interim valuations from British Land and Land Securities (17 and 18 of November respectively) which we think will probably show flat or little changed NAVs.
"After the 'W' in valuations with write downs concentrated in the December valuation in 2007 and 2008 (with NAV transparency for fund redemptions and then rights issues), estate agents, we think, will be reluctant to chase even the top end of the market, and may require more than the two-to-three quarters of yield trends to be re-established.
"After all, not all valuation dates coincided with the nadir of the cycle."