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Global and local issues mask fundamentals

The average prime yield across all sectors moved inwards in December and now stands at 5.18%, a fall of 29bps over the last twelve months. This was driven by continued strong sentiment and trading in the retail warehouse sector which offers value, but is also expected perform strongly occupationally post Covid.

Although the investment market was almost shutdown in Q2 volumes have recovered to a respectable £41.8bn with industrials and alternatives accounting for their highest proportion of the market ever at 20% and 35%, respectively.

This year will see many macro-economic challenges that will have an impact on investor sentiment and capital flows, but it is worth remembering the strong fundamentals associated with all sectors of the UK occupational market, particularly when it comes to vacancy rates.