UK commercial property update and outlook
August 2023
All Property quarterly total return edged down from 1.0% in June to 0.4% in July following a further tick up in the average commercial property equivalent yield. The steep rise in interest rates has been met with a relatively more moderate increase in property equivalent yields despite their moving out at a record rate in Q4 2022. Retail and industrial valuation yields have been relatively stable so far over 2023, with only office pricing drifting and moving out more sharply in the last two months.
