Prime yields continue to tighten across Europe but at a slower rate than in recent quarters, CBRE data indicates.
Prime yields continue to tighten across Europe but at a slower rate than in recent quarters, CBRE data indicates.
CBRE's Q4 EMEA Rents and Yields MarketView report tracks yield compression in 45 markets, an increase in yields in five and stable yields in another 109.
The average prime office yield moved down 8 basis points over the fourth quarter to 4.92%, compared to around 15bps inward shift in the previous two quarters. The main office market movers included Amsterdam (moving 30bps down to a yield of 4.50%); Milan (down 25bps to 4%); Munich (down 15bps to 3.65%) and Madrid (down 25bps to 4.25%).
Prime industrial yields in EMEA moved inward 6.76bps in Q4 to 6.69%. Compression was higher for retail. Prime retail high-street moved 13.32bps lower to 4.21%, while shopping centre yields edged down 9.54bps to 5.03%. Milan and Rome led the tightening, both dropping 50bps to prime yields of 3.50%. Copenhagen almost ended on 3.50% though the shift was less (-25%). Dublin also moved in by a similar amount to a very keen retail yield of 3.25%.
CBRE’s report shows that rents remained moving upwards at a gradual pace. High-street retail and shopping centres experienced the most pronounced movement in London, the UK regions, Dublin Prague and Milan.
