Net prime yields for industrial warehouses in the UK 2022-2023, by market
The prime yield for industrial and logistics real estate rose across all leading markets in the United Kingdom (UK) in 2023. In the second quarter of 2023, yields were the lowest in London Heathrow, at approximately 4.55 percent - an increase of over one percentage point over the same quarter in 2022. Among the major reasons for this increase is the uncertain economic climate and tighter monetary policy, leading to investment volumes in the sector falling. As the investment environment becomes riskier, investors are unwilling to proceed with deals at lower yield, leading to the yields rising.
