Office property prime yield the City of London (United Kingdom) 2019, by district

Yields measure the amount the expected income on investments made as a percentage. Yields consider the cost of buying a property, it’s running costs and the income generated through renting the property. Yields grow or decrease based on occupancy rates of the area and industry as well as demand and confidence. In 2019, prime yields for office property in London fell below five percent. Outside of London, prime yields in the United Kingdom ranged between 4.75 percent and 6.5 percent.

Prime office rents

Prime rents for office space in London are higher than the rest of the United Kingdom. The cost of rent varies due to a few factors including area, grade of property, amenities provided, and average area costs.

Vacancy rates lower than 10-year average

Compared to the ten-year average, vacancy rates in the capital of England were low. Areas such as the South Bank had vacancy rate of two percent during 2019, which in turn is likely to further drive the cost of rent.