Total Return Ranking

Over the 10 years to December 2016, global gateways were not standout performers but generally offered lower income returns in exchange for higher capital growth.

10-year annualized total return ranking of office standing investments; 2007-2016

Source: MSCI
Source: MSCI

Global gateway cities (large, highly connected, globally significant cities) occupy a prominent position in the investment landscape but what is it that makes them stand out? From a recent total return perspective, there’s no clear pattern to differentiate global gateway cities from regional gateways, nationally significant markets, or other cities. Over the 10 years to December 2016, global gateways were not standout performers but generally offered lower income returns in exchange for higher capital growth. Instead, the appeal of these cities predominantly derives from depth, liquidity and familiarity all of which contribute to improved accessibility.