- In Q1 2022 All-Property average prime rents increased 2.2% as yields decreased 10bps.

- Office rents rose 1.6% while yields were stable over the quarter.

- In Retail, High Street Shop rents increased 0.1% while Retail Warehouses increased by 1.0%. Retail Warehouse yields moved in 44bps.

- Industrial yields moved out 2bps while rents rose 2.8%.

CBRE’s latest Prime Rent and Yield Monitor showed a quarter of rental growth across all sectors except for Shopping Centres with average All Property prime rents rising 1.9% in Q2 2022. At the All-Property level, yields moved in 10bps over the quarter.

Industrial prime rents increased 2.8% in Q2 2022. Rental growth was driven by Industrials in East Midlands (3.5%), West Midlands (3.5%) and Eastern (3.3%). Industrials in London and the South East both reported rental growth of 2.5%. Rental values in Scotland remained flat over the quarter which makes it the only region that did not report rental growth. Industrial prime yields moved out 2bps to 4.0%. While Industrial prime yields remain robust, in Q2 2022, yields increased for the first time since Q3 2020. Industrials in London, South East and Eastern reported a yield below the sector average at 3.5%, 3.8%, and 3.9% respectively. Prime yields in the rest of the UK (excl. SE and Eastern) moved in 1bps to 4.6% in Q2 2022.

Office prime rents rose 1.6% in Q2 2022. East Midlands (6.0%) and Fringe London (3.7%) reported the largest increase in rents. In Central London, values rose 2.3% over the quarter. Central London rental growth was predominantly driven by West End Offices which posted an increase of 2.9%. On the investor side, the average yield for the Office sector were flat over Q2 2022. Offices in the North West reported the greatest fall in yields at -16bps to 7.5%.  Yorkshire and Humberside and North East were the only regions where yields moved out by 26bps and 23bps respectively.  

High Street Shop prime rental values decreased by 0.1% in Q2 2022.  Rental values were flat for most regions over the quarter. Prime rents in the South West increased 2.9%, which was the region reporting the strongest rental value growth. West Midlands was the only region that reported a fall in rental values at 0.4%.  Rental values for Shopping Centres were flat over the quarter. Retail Warehouses prime rents rose 1.0% in Q2 2022.  On the investor side, Retail Warehouse yields moved in 44bps in Q2 2022 to 6.6%, the largest inward yield movement out of all sectors. Over the quarter, yields remained stable for High Street Shops. Shopping Centre prime yields moved out marginally by 1bps.