Real estate investors’ eagerness to pick up a bargain on the high street has seen yields harden for the first time since last November.
The team at Savills said prime high street yields stood at 6.25% in March, down from 6.5% in February. Prime retail warehouse yields fell to 4.75% from 5%.
James Gulliford, joint head of UK investment at Savills, said: “Shopping centres, particularly those with a convenience and community focus, may join the yield hardening trend in the coming months in light of mounting investor appetite. Improving footfall, renewed occupier demand, the yield play against other sectors and potential repurposing angles have all culminated to boost investor interest across the wider retail property spectrum, albeit the focus remains very much on prime assets with robust fundamentals.”
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