Prime yields of industrial real estate in the UK 2015-2023, by property type
Industrial multi-lets and industrial distribution properties had the lowest yields in the industrial real estate sector, amounting to five percent in February 2023. Conversely, yields were the highest for retail warehousing (restricted), at six percent. Yield is an indicator for the expected return of a property investment and is calculated as the ratio of rental income and the property value. Several factors can drive yields - increased demand could raise property values causing lower yields, while a fall in demand could create the opposite effect. Overall, yields expanded across all commercial property types in 2023.
