Skip to main content Skip to footer

Data Bite - MSCI Equivalent by Yield August 2021

Download Report
alt=""

MSCI Equivalent Yield by Sector

What:

This chart compares latest equivalent yield levels for the main commercial property sectors as reported by MSCI with their respective minimum and maximum. We looked at this chart already in May when the Q1 MSCI data was released. With the Q2 data now out, it is worth revisiting. All property yields have compressed by 16bps during Q2 and are now only 15bps above their lowest ever level. With the exception of retail, yields across the main sectors are in fact at (in the case of industrial) or reasonably close to record low levels.

Why:

If any doubts linger about the stability of UK real estate investment, these doubts may be allayed by the remarkable stability of investment yields. In Q2 2021, yields fell across all main sectors, led by industrial (-23bps) where yields have reached another record level. Retail yields compressed for a second consecutive quarter (-14bps), with Retail Parks recording a particularly large fall (-27bps) and supermarkets also compressing further (-13bps) and offices are also seeing sustained yield compression (-8bps). These surprisingly strong figures will no doubt impact on total returns forecasts for 2021. In June, we had predicted all property total returns growth of 6.4%. Our next forecasts will be released in September.


alt=""

Data Bite - MSCI Equivalent by Yield August 2021

Download Report
Related Experts

Walter Boettcher

Head of Research and Economics

Research and Forecasting

London - West End

I am the the Chief Economist at global property advisors Colliers International based in London.  I am a research economist identifying timely research topics and directing research and forecasting outputs.

I have over 20 years UK and European property industry experience and extensive expertise across a wide range of property sectors and related industries.

I participate regularly in industry panel discussions, but am focused more on direct client engagement with institutions, property companies, banks, and private investors. A regular media commentator, I have a wide range of national and broadcast experience.

I joined Colliers International in August 2007 after several years at a private property company where he was responsible for managing a mixed portfolio of London residential, retail and office assets.

Previously, I worked in a few London property advisory firms, a geodemographic company as well as a few youthful sojourns in the US offshore oil industry, local government and entertainment business.

I am an economics graduate of the University of Texas at Austin and received his PhD from the Faculty of Science at University College London.  I am a member of Lambda Alpha International and the Society of Property Researchers.

Perhaps best known for my alternative take on property economics and investment, I am a keen proponent of UK regional development and infrastructure investment.

View expert

Oliver Kolodseike

Director of Economics and Research

Research and Forecasting

London - West End

Oliver is Head of Economic Research and leads the quarterly UK forecasting process including the publication of Colliers' Real Estate Investment Forecasts (REIF) report. He also  authors the monthly Property Snapshot and, quarterly Scotland Snapshot. Prior to joining Colliers, he worked for the Centre for Economics and Business Research and IHS Markit. Oliver holds a BA in Economics from  Georg-August University Göttingen (Germany) and an MSc in Economics from Exeter University.

View expert