Prime Rents Stable in Q3
Prime rental growth for commercial property was marginally positive this quarter, growing by 0.2%.
Office markets saw the strongest rental growth this quarter, growing by 1.5%. Prime shop rents saw growth of 0.1%, whilst Prime industrial rents fell 0.3%.
The downward shift in prime yields came to an end this quarter, with the All Property prime yield unchanged at 6.3%.
The property/gilt yield gap widened further in Q3 following a 40bp reduction in gilt yields; the yield gap is now 340bp.