After seven months of statis, the Jones Lang LaSalle prime weighted yield moved in five basis points to 5.5% in October.
The shift was on the back of strengthening demand for prime industrial assets, which resulted in prime yields for single and multilet industrials in the South East hardening by 25bp, to 6% and 5.75%, respectively.
JLL said that while demand was strong for prime industrial, the majority of secondary assets continued to struggle, with the exception of some good-quality secondary multilet assets outside of London. It added that no further yield compression was expected in the sector this year.
The West End office market pushed on, with 10 deals taking place during September. UK buyers dominated, followed by those from the Middle East. Prime yields in the West End remained unchanged at 4% for lot sizes below £10m, 4.25% for assets of £10m-£80m and 5% for those of more than £80m.
Prime office yields in the City remained unchanged at 5.25%.
