There is just a suspicion in the property investment market that prime yields may be beginning the long road to recovery after two years of falling value.
Jones Lang LaSalle have indicated, in a recent report, that investment yields may be hardening for the first time since 2007. Prime City office yields have moved in from 6.5% to 6.25%, since the end of May.
However, the same cannot be said for investment yields in the secondary office sector where demand for stock that may require active asset management has eased off and prices have weakened. Yields in the industrial sector appear to have stabilised but confidence in the sector remains fragile while rental growth remains negative.