2022-03-09-莱坊-Investment_Yield_Guide_March_2022_4页_378kb

Prime Yield Guide Summary (March 2022)

This guide provides indicative prime yield information for specific real estate sectors, based on rack-rented properties and excluding bond type transactions, prepared on March 3, 2022, by Knight Frank Intelligence.

Key Market Changes (Mar-21 to Mar-22)

• Retail: High Street Retail yields stable at 6.50%–6.25%; Regional Cities yields negative; Open A1 and Bulky Goods Parks show positive changes.
• Leisure and Office: Prime Leisure and Office yields stable or positive, with adjustments for Grade A offices and business parks.
• Distribution/Warehousing: Prime Distribution yields positive, with decreases in some sectors like Business Parks.
• Residential: Student Accommodation and Budget Hotels show positive yield trends; Healthcare and Data Centers stable.

Sectors and Yields

• Retail: Bond Street (stable 2.75%), Oxford Street (stable 3.25%), High Street (6.25% negative), Regional Cities (-).
• Leisure & Office: City Prime yields positive (-), West End stable or positive, South East Towns mixed changes.
• Distribution: Warehousing yields positive with fixed/indexed uplifts.
• Residential: Student Accommodation (3.00%–3.75% positive), Budget Hotels (stable to 3.25% positive).

Global and Macroeconomic Factors

• Energy prices surged due to Russia-Ukraine conflict, potentially impacting inflation and supply chains.
• Geopolitical risks elevated, with Fed likely raising interest rates in 2022.
• UK signed new trade agreements post-Brexit, boosting investor confidence.
• Research insights from Knight Frank include UK Cities data and ESG updates.

Research Highlights

• Latest Knight Frank guide emphasizes prime fundamentals over secondary stock, with positive sentiment in key areas.
• Reports available for download, offering strategic advice and forecasts.

For more details, refer to the full report, published for general information only.