2026-06-05-莱坊-Investment_Yield_Guide_June_2026_4页_577kb

Prime Yield Guide – June 2026 Summary

Core Content

The Prime Yield Guide – June 2026 by Knight Frank Intelligence provides a snapshot of commercial property yields across various sectors in the UK. The data is based on rack rented properties and excludes bond type transactions. It is important to note that the guide is for indicative purposes only and was prepared on 04 June 2026.

The guide is influenced by the ongoing geopolitical tensions from the Middle East conflict, which have kept investor sentiment cautious and subject to rapid shifts.

Key Sectors and Yields

1. High Street Retail (Institutional Lot Sizes)

• Bond Street: 2.75% - 3.00% (consistent across all months)
• Oxford Street: 4.50% (unchanged)
• Prime Towns: 6.50% (declined to 6.25% in later months)
• Regional Cities: 7.00% (declined to 6.75% in later months)
• Good Secondary: 10.00% (consistent)

2. Shopping Centres (Sustainable Income)

• Regional Scheme: 7.50% (unchanged)
• Sub-Regional Scheme: 8.50% - 9.00% (unchanged)
• Local Scheme (Successful): 9.50% (unchanged)
• Neighbourhood Scheme (Assumes <25% from supermarket): 10.00% - (unchanged)

3. Out of Town Retail

• Open A1 Parks: 5.25% - 5.50% (unchanged)
• Good Secondary Open A1 Parks: 6.50% - 6.75% (unchanged)
• Bulky Goods Parks: 5.50% (unchanged)
• Good Secondary Bulky Goods Parks: 6.50% - 6.75% (unchanged)
• Solus Open A1 (15 year income): 6.00% - (unchanged)
• Solus Bulky (15 year income): 6.00% - (unchanged)

4. Offices

• City Prime (10 years): 5.25% - 5.50% (unchanged)
• West End: Prime Core (Mayfair & St James's): 4.00% (unchanged)
• West End: Non-core (Soho & Fitzrovia): 4.75% - 4.50% - 4.75% (unchanged)
• Major Regional Cities (10 years): 6.50% (unchanged)
• Major Regional Cities (5 years): 7.50% (unchanged)
• Secondary, Regional Cities: 11.00% + (unchanged)
• South East Towns (10 years): 7.25% (unchanged)
• South East Towns (5 years): 8.25% (unchanged)
• Secondary, South East Towns: 11.50% + (unchanged)
• South East Business Parks (10 years): 8.00% + (unchanged)
• South East Business Parks (5 years): 10.50% + (unchanged)

5. Warehouse & Industrial

• Prime Distribution / Warehousing (20 years [NIY], higher OMV/index): 5.00% - 5.25% (increased in May)
• Prime Distribution / Warehousing (15 years, OMRRs): 5.25% - 5.50% (increased in May)
• Secondary Distribution (10 years, OMRRs): 6.00% - 6.25% (increased in May)
• Greater London Estates: 4.75% - 5.00% (increased in May)
• South East Estates: 5.00% - 5.25% (increased in May)
• Good Modern Rest of UK Estates: 5.00% - 5.25% (increased in May)
• Good Secondary Estates: 6.50% - 7.00% (unchanged)

6. Specialist Sectors

• Car Showrooms (20 years with indexed uplifts & dealer covenant): 6.00% (unchanged)
• Budget Hotels London (20 years, 5 yearly indexed reviews): 4.50% - 4.75% (increased in May)
• Budget Hotels Regional (20 years, 5 yearly indexed reviews): 5.00% - 5.25% (increased in May)
• Student Accommodation Prime London (25 years, Annual indexation): 4.00% - 4.25% (increased in May)
• Student Accommodation Prime Regional (25 years, Annual indexation): 4.25% - 4.50% (increased in May)
• Healthcare (Not for Profit Operator, 30 years, Annual indexed reviews): 4.25% - 4.50% (increased in May)
• Healthcare (SPV credit, 30 years, Annual indexed reviews): 5.75% (unchanged)
• Data Centres (Leased, 15 years, Annual indexation): 5.00% (unchanged)
• Life Sciences (15 years): 4.75% - 5.00% - 5.25% (increased in May)
• Income Strips (50 years, Annual RPI / CPIH+1% RRs, Annuity Grade): 4.00% - 4.25% (increased in May)
• Ground Rents (125 years, Annual RPI / CPIH+1% RRs, <15% EBITDA cover, Vacant Possession cover <40%): 3.50% - 3.75% (increased in May)

Leading Indicators

• Labour Market: Indicators are weakening, suggesting the current inflation uptick may be short-lived. PAYE employment fell by 100,000 in April, with payrolls down -0.7% year-on-year.
• Household Energy Costs: Energy price expectations have increased, but not as sharply as feared. The Ofgem cap is projected to rise by +13% in Q3, in line with April 2025 levels.
• UK CRE Returns: Annualised total return was +6.33% in April 2026, showing resilience despite the Middle East conflict. Future returns are expected to be driven more by income and rental growth than capital appreciation.

Bonds & Rates

ESG and Real Assets

• Knight Frank highlights the growing importance of Infrastructure, Waste and Energy, Garden Centres, Film Studios, Serviced Offices, Data Centres, and Life Sciences as key areas of expertise.
• The report also underscores the shift from real estate to real assets, with infrastructure gaining prominence.

Key Contacts

• Emily Miller – Partner – Valuation & Advisory – Head of UK Fund
  Email: Emily.Miller@KnightFrank.com
  Phone: +44 20 7861 1483

• Simon Gillespie – Partner – Valuation & Advisory – Head of Central London Valuations
  Email: Simon.Gillespie@KnightFrank.com
  Phone: +44 20 7861 1292

• Henry Francis – Associate – Valuation & Advisory – UK Fund Valuations
  Email: Henry.Francis@KnightFrank.com
  Phone: +44 20 7861 5224

• Neal Newman – Partner – Valuation & Advisory – Real Estate Finance
  Email: Neal.Newman@KnightFrank.com
  Phone: +44 20 7861 1693

• Ben Nicholson – Partner – Valuation & Advisory – UK Fund Valuations
  Email: Ben.Nicholson@KnightFrank.com
  Phone: +44 20 7590 2468

• Will Matthews – Partner – Research – Head of Commercial
  Email: William.Matthews@KnightFrank.com
  Phone: +44 20 3909 6842