● In October, the JLL All Property prime yield resumed its downward trajectory, having remained stable since July. The prime yield fell by 7bp over the month to a record low of 4.50%.
● Prime yields across central London, London suburbs, and the core regional cities hardened by 25bp. The prime West End yield now stands at 3.50%, its lowest ever level and 75bp lower than a year ago.
● The All Retail prime yield remained unchanged at 4.37% for the fifth consecutive month, reflecting weaker, albeit improving, consumer demand.
● Leisure saw strong demand from investors, with prime yields strengthening by 25bp to 5.75% for edge-of-town parks, driven by a lack of suitable stock.
● All Industrial prime yields, having fallen by 23bp in September, remained unchanged at 5.00% in October. Strong demand for prime multilet properties continues.
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Interest rates and prime yields |
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Source: Jones Lang LaSalle; Bloomberg |
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Prime yields by sector |
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Source: Jones Lang LaSalle |
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UK prime yields |
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Note: Yields are generated by Jones Lang LaSalle and based on the latest evidence of deals by JLL and other agents. The prime yield series is a weighted yield (derived from capital values) based on individual prime yields. |
