Bonds and stocks have been reaping the bullish  glory since the lows of March this year. Meanwhile, property has been a pariah of the asset classes following its roll at the heart of the the credit bubble, the subsequent credit crisis and cyclical considerations.

But now the time of commercial real estate may be coming round again. With the rapid rise of stocks and bonds likely to have squeezed out the lion’s share of returns in the near term at least, some investors are beginning to look elsewhere in pursuit of more upside.

U.K. commercial property prices rose 1.9 percent in October from the previous month, the biggest gain since December 2005 and the third straight increase after more than two years of declines, according to Investment Property Databank Ltd reports Bloomberg. At the same time, values are still down 42 percent from the market’s peak in June 2007. The report adds:

Standard Life Investments is telling investors to consider increasing the proportion of money they hold in stores, office buildings and warehouses, said Andrew Milligan, head of global strategy. Today, the commercial property market compares with where stocks were about seven months ago, said Mike Turner at Aberdeen Asset Management Plc.

Milligan said at his office in Edinburgh’s Georgian city center. “If we are at the start of a subdued but normal economic recovery, then very clearly property will inexorably become more expensive.”

The start of another property boom? Doesn’t that sound exciting crazy?

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