2022-04-22-莱坊-Investment_Yield_Guide_April_2022_4页_386kb

Knight Frank Prime Yield Guide - April 2022

This document provides indicative market data for rack-rented properties, disregarding bond-type transactions, compiled on 19 April 2022.

Scope

• Reports yields across various UK property sectors.
• Based solely on rack rented properties (standardized tenancies).
• Excludes bond-type (non-standardized) transactions.

Key Economic Factors Tracked

• Interest Rates: Bank of England Base Rate.
• Long-term Funding: 10-year UK gilt yields.
• Short-term Funding: 5-year swap rates.

Sector Summaries (APR-21 to APR-22)

Retail

• Prime Shops (Oxford/Cambridge): Stable ~6.25%.↓
• Regional Cities (Man/Birmingham): Stable ~6.50%.
• Good Secondary Towns: Negative ~8.25%.↓
• Regional Scheme: Positive ~7.50%.↑
• Shopping Centres: Mostly stable to slightly positive trends (~8.00% - 9.50%).
  • Note: Open A1 (Essential Retailers) decreased significantly (~5.25%-5.75%). Secondary Open A1 Parks also decreased (~6.00%-6.25%). Bulky Goods and Secondary Bulky Goods Parks decreased but remained positive.

Leasing / Offices

• Prime Office (West End): Positive trend (e.g., ~3.00%-3.50%).↑
• Non-Core Office (West End): Positive trend (e.g., ~3.75%-4.00%).↑
• Office (Grade A Major Regional): Positive trend (e.g., ~4.50%-5.25%).↑
• Office (Multi-Fit Regional): Small positive decrease (-0.25%).→
• Business Parks (South East): Stable (~5.25%-6.75%).→

Hotels

• Report notes positive sentiment despite inflation and recessionary pressures.
• UK Hotel Market experienced strong occupancy recovery post-Omicron.
• London and regional markets benefited.
• RevPAR remains below pre-pandemic levels.
• Cost-of-living crisis and inflation are key risks.
• Global economic outlook is downgraded by the World Bank.

Industrial/Logistics

• Distribution/Warehousing (Prime/OMRR): Positive trends (~3.00%-4.00%).↑
• Warehouse & Secondary Distribution (OMRR): Positive trend (~4.00%).↑
• Industrial Space (South East & Elsewhere): Positive trend (~3.25%-4.00%).↑
• Modern Industrial Estates: Positive trend (~3.50%-4.50%).↑

Residential

• Budget Hotels (London/Regional): Stable ~3.25%-4.00%.
• Prime Student Accommodation (London/Regional): Stable ~3.00%-3.75%.
• Healthcare: Stable ~3.25%-3.50%.
• Data Centres: Stable ~4.00%-4.50%.

Specialist Sectors

• Income Strips: Very attractive stable yield (~2.00%-2.25%).

Notes

• Changes are tracked from APR-21 to MAR-22 (unless otherwise specified like APR-21 to APR-22).
• "NIY" means No Increase Yearly uplift (good for stable rental risk).
• "POSITIVE" sentiment does not guarantee future performance.
• Trend directions may vary within sub-categories (see Notes above).
• Dates: April 2022 guide, data points may relate to periods around mid-2021 to mid-2022.