UK commercial property update and outlook
The All Property average equivalent yield tightened in March and turned monthly total return positive for the first time since June 2022. It marks a peak-to-trough 147bp outward shift in yields that has taken 29% off capital values following the recent step up in interest rates and borrowing costs. Investment transactions remained low in Q1 as a hangover from weak Q4 activity last year. But investor sentiment and activity is much improved, and the weight of global capital set against limited investment supply has sharpened prime asset prices again.