Rise in yields continues
As with the previous quarter, the All Property Average Yield has increased by 0.1% points over the quarter to May to stand at 7.5%. This has been the third successive quarterly rise. In contrast, the gilt yield has continued to fall from 8.9% in October 1994 to now stand at 8.6%. The rise in the All Property Average Yield has been predominantly due to yield rises in the retail sector; up by 0.3% points to 6.5%. All regions saw increases of between 0.1% points and 0.3% points over the quarter.
With the All Office Yield remaining unchanged at 7.1%, the gap between the All Shops Yield and the All Office Yield has now narrowed to a level last seen at the end of 1981. The only location to experience a change of more than 0.1% points was Holborn & Marylebone which saw its yield fall by 0.2% points.
For further information please call Alan Patterson on 0171 629 7666, extension 2376 or write to him at Hillier Parker, 77 Grosvenor Street, London, W1A 2BT.
As with the previous quarter, the All Property Average Yield has increased by 0.1% points over the quarter to May to stand at 7.5%. This has been the third successive quarterly rise. In contrast, the gilt yield has continued to fall from 8.9% in October 1994 to now stand at 8.6%. The rise in the All Property Average Yield has been predominantly due to yield rises in the retail sector; up by 0.3% points to 6.5%. All regions saw increases of between 0.1% points and 0.3% points over the quarter.
With the All Office Yield remaining unchanged at 7.1%, the gap between the All Shops Yield and the All Office Yield has now narrowed to a level last seen at the end of 1981. The only location to experience a change of more than 0.1% points was Holborn & Marylebone which saw its yield fall by 0.2% points.
Average Yields Feb94 Mar Apr May Jun Aug Oct Nov Feb95 May95 Shops 6.7 6.2 5.9 5.9 5.9 6.0 6.0 6.0 6.2 6.5 Offices 8.0 7.7 7.4 6.9 7.2 6.9 7.2 7.2 7.1 7.1 Industrial 9.1 8.3 8.0 7.9 7.9 7.9 8.1 8.1 8.4 8.4 All Property 8.2 7.6 7.3 7.2 7.2 7.2 7.3 7.3 7.4 7.5 Gilt Yield 6.8 7.5 8.0 8.3 9.1 8.7 8.9 8.8 8.7 8.6 Equity Yield 3.3 3.5 3.7 3.7 4.0 3.8 4.0 3.9 4.1 4.1 All Shops 6.7 6.2 5.9 5.9 5.9 6.0 6.0 6.0 6.2 6.5
Average Yields - actual change Feb-95 to May-95 May-94 to May-95 Shops 0.3 0.6 Offices 0.0 0.2 Industrial 0.0 0.5 All Property 0.1 0.3 Gilt Yield -0.1 0.3 Equity Yield 0.0 0.4
Average Yields Feb94Mar Apr May Jun Aug Oct Nov94 Feb95 May95 All Shops 6.7 6.2 5.9 5.9 5.9 6.0 6.0 6.0 6.2 6.5 Central London 5.4 5.2 5.0 5.0 5.0 5.0 5.0 5.1 5.1 5.2 Inner Sub London 8.9 8.6 8.4 8.4 8.4 8.4 8.4 8.5 8.7 9.0 Outer Sub London 7.4 7.0 6.9 6.9 6.9 6.9 6.9 6.9 7.1 7.3 Suburban London 8.2 7.8 7.7 7.6 7.6 7.7 7.7 7.7 7.9 8.2 London 7.1 6.8 6.6 6.6 6.6 6.6 6.6 6.7 6.8 7.0 South East 6.0 5.6 5.3 5.3 5.3 5.4 5.4 5.4 5.6 5.9 South West 5.9 5.4 5.1 5.1 5.1 5.1 5.2 5.2 5.4 5.6 East Anglia 5.8 5.4 5.1 5.1 5.1 5.2 5.2 5.2 5.4 5.7 East Midlands 6.2 5.7 5.5 5.4 5.4 5.5 5.5 5.5 5.7 6.1 West Midlands 5.7 5.2 5.0 5.0 5.0 5.0 5.0 5.0 5.1 5.3 Wales 7.0 6.4 6.1 6.1 6.1 6.2 6.2 6.3 6.5 6.7 North West 6.3 5.7 5.4 5.4 5.4 5.5 5.5 5.5 5.7 5.9 Yorks & Humberside 6.3 5.6 5.4 5.4 5.4 5.4 5.4 5.5 5.7 5.9 North 6.4 5.8 5.5 5.5 5.5 5.6 5.6 5.6 5.8 6.1 Scotland 6.8 6.3 6.0 6.0 6.0 6.3 6.3 6.3 6.2 6.3
Average Yields All Offices 8.0 7.7 7.4 6.9 7.2 6.9 7.2 7.2 7.1 7.1 West End 6.1 5.7 5.5 5.4 5.4 5.4 5.4 5.4 5.4 5.3 Holb/Marylebone 7.8 7.5 7.2 7.1 7.1 7.1 7.1 7.1 7.0 6.8 Central City 6.1 6.0 5.7 5.3 5.5 5.3 5.5 5.5 5.5 5.5 Fringe City 7.9 7.5 7.3 7.1 7.1 7.1 7.1 7.1 7.0 7.0 Central London 6.7 6.3 6.1 5.9 5.9 5.9 5.9 5.9 5.9 5.9 Suburban London 7.9 7.4 7.2 7.0 7.0 7.0 7.0 7.0 6.9 6.9 London 7.0 6.6 6.4 6.2 6.2 6.2 6.2 6.2 6.2 6.1 South East 8.3 7.6 7.2 6.9 7.0 6.9 7.0 7.0 6.8 6.8 South West 8.9 8.2 7.8 7.5 7.5 7.5 7.5 7.5 7.5 7.5 East Anglia 9.0 8.3 7.8 7.5 7.5 7.5 7.5 7.3 7.2 7.3 East Midlands 9.2 8.4 8.1 7.9 7.9 7.9 7.9 7.7 7.7 7.8 West Midlands 8.6 7.9 7.6 7.4 7.4 7.4 7.4 7.3 7.3 7.3 Wales 9.9 9.2 8.6 8.3 8.3 8.3 8.3 8.2 8.2 8.3 North West 9.5 8.7 8.4 8.1 8.1 8.1 8.1 8.0 8.0 8.0 Yorks & Humberside 9.0 8.2 7.9 7.7 7.6 7.7 7.6 7.5 7.5 7.5 North 9.8 9.0 8.7 8.3 8.3 8.3 8.3 8.2 8.2 8.3 Scotland 7.6 7.1 6.8 6.5 6.5 6.7 6.7 6.6 6.6 6.7
Average Yields All Industrial 9.1 8.3 8.0 7.9 7.9 7.9 8.1 8.1 8.4 8.4 London 8.4 7.6 7.4 7.3 7.3 7.3 7.5 7.5 7.8 7.8 South East 8.1 7.4 7.1 7.0 7.0 7.0 7.2 7.2 7.5 7.5 South West 8.7 7.9 7.6 7.6 7.6 7.6 7.9 7.9 8.2 8.2 East Anglia 8.8 8.1 7.7 7.5 7.5 7.5 7.8 7.8 8.2 8.2 East Midlands 8.4 7.7 7.5 7.3 7.3 7.3 7.6 7.6 8.0 8.0 West Midlands 8.9 8.2 7.9 7.7 7.6 7.7 7.9 7.9 8.2 8.2 Wales 9.3 8.6 8.4 8.1 8.1 8.1 8.3 8.3 8.6 8.6 North West 9.2 8.4 8.1 8.0 8.0 8.0 8.2 8.2 8.5 8.5 Yorks & Humberside 9.1 8.3 8.0 7.9 7.9 7.9 8.1 8.1 8.4 8.4 North 9.8 9.1 8.8 8.5 8.5 8.5 8.6 8.6 8.9 8.9 Scotland 9.5 8.8 8.5 8.4 8.4 8.7 8.8 8.8 8.5 8.6
Average Yields - actual change Feb-95 to May-95 May-94 to May-95 All Shops 0.3 0.6 Central London 0.1 0.2 Inner Sub London 0.3 0.6 Outer Sub London 0.2 0.4 Suburban London 0.3 0.6 London 0.2 0.4 South East 0.3 0.6 South West 0.2 0.5 East Anglia 0.3 0.6 East Midlands 0.4 0.7 West Midlands 0.2 0.3 Wales 0.2 0.6 North West 0.2 0.5 Yorks & Humberside 0.2 0.5 North 0.3 0.6 Scotland 0.1 0.3
Average Yields - actual change Feb-95 to May-95 May-94 to May-95 All Offices 0.0 0.2 West End -0.1 -0.1 Holb/Marylebone -0.2 -0.3 Central City 0.0 0.2 Fringe City 0.0 -0.1 Central London 0.0 0.0 Suburban London 0.0 -0.1 London -0.1 -0.1 South East 0.0 -0.1 South West 0.0 0.0 East Anglia 0.1 -0.2 East Midlands 0.1 -0.1 West Midlands 0.0 -0.1 Wales 0.1 0.0 North West 0.0 -0.1 Yorks & Humberside 0.0 -0.2 North 0.1 0.0 Scotland 0.1 0.2
Average Yields - actual change Feb-95 to May-95 May-94 to May-95 All Industrial 0.0 0.5 London 0.0 0.5 South East 0.0 0.5 South West 0.0 0.6 East Anglia 0.0 0.7 East Midlands 0.0 0.7 West Midlands 0.0 0.5 Wales 0.0 0.5 North West 0.0 0.5 Yorks & Humberside 0.0 0.5 North 0.0 0.4 Scotland 0.1 0.2
For further information please call Alan Patterson on 0171 629 7666, extension 2376 or write to him at Hillier Parker, 77 Grosvenor Street, London, W1A 2BT.
