Prime yields for regional unit shops, market towns and small market towns softened by 25 basis points in October to 5.75%, 5.75% and 6% respectively.
However, this was not enough to change the Jones Lang LaSalle prime weighted yield, which is composed of indicators from all sectors and remained static at 5.5% for a second month.
The agent said that the City office market “slowed noticeably” over the past eight weeks, with investors spooked by the malaise in Europe. Investment activity in the West End has also been below average, with just six transactions in the past month.
High street investors are apprehensive, with only prime, secure assets in the best centres attracting multiple offers.
Although investors remain cautious, there has been strong demand for the best industrial assets, with competitive bidding on prime logistics assets with long leases and strong covenants.
