UK Prime Yields in June 2009In particular, UK prime yields in June 2009 for shop units in prime Central London dropped 25 basis points to 5.0%, but remained flat in prime retail centres, large metropolitan areas and regional centres at 6%, 6.75% and 6.75%, respectively, compared to their May 2009 levels. Prime market yields for secondary retail stayed also flat at 8.5%. Shopping centre yields remained flat as well. As of June 2009, Regional Dominant centres offered the lowest yield of 7.0% while shopping centres in small urban centres offered the highest yield of 9.5%. Shopping centres in major urban centres offered an average yield of 8.5%. Prime yields for all types of retail warehouses, with the exception of supermarkets, decreased in June 2009. Yields for Open Consent Parks compressed the most, by 50 basis points, to 7.25%. Yields for Shopping Parks, Bulky Goods Parks and Solus Units decreased by 25 basis points to 6.5%, 8.5% and 8.25%, respectively. Yields for supermarkets remained constant at 6%. According to the Cushman & Wakefield report, prime office yields at all locations remained on average flat, with the exception of offices in Regional CBD – Major Cities where they compressed by 25 basis points. West End and City offices offered the lowest yields of 5.75% and 6.5%, respectively, while Regional Out of Town offices offered the highest yield of 9%. Finally yields for warehouse/industrial property remained flat at 7.75% for Distribution Warehouses, 8% for Industrial Estates – South East, and 9% for Regional Industrial Estates.
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