Prime yields of commercial real estate in the United Kingdom 2019-2020

As of March 2020, a total of five commercial property segments on the United Kingdom (UK) market saw an increase in prime yields from the same month last year. These were also the property types with the highest prime yields exceeding five percent: retail warehouses, leisure parks, shopping centres and high street retail. Yield is an indicator for the expected return of a property investment and is calculated as the ratio of the rent 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.