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JLL yields: City bull run shows signs of weakening

The bull run by City offices showed some signs of weakening last month as yields on offices priced at more than £40m softened by five basis points to 5.5%.


And the City was not the only sector to weaken, as the spread between prime and secondary assets in the high street retail market continued to widen.


Bank-led disposals of packages of secondary assets also left stand-alone shops struggling to attract attention.


Yields for unit shops in market towns moved out by 25bp to 6%, while pricing for shopping centres in town centres softened by 50bp to 6.5%.


As a result of outward yield movement in these sectors, the Jones Lang LaSalle prime weighted yield increased by 5bp to 5.55%.


The West End office market remained a favourite with international investors, and although the market is thinner for larger lot sizes, there has been no fall in pricing.

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