In its recently published report ’12 Cities: Occupying and investing in world city real estate’, Savills considered yield metrics for office space in each of the cities reviewed. In London’s West End sub-market, for instance, headline office rental yields are 2.7%. Allowing for hidden costs borne by the landlord and incentives to tenants, the effective yield is 2.4%. Effective yields exceed benchmark 10-year bond yields in the UK by 0.6%. Globally, the equivalent figures are 4.3%, 3.3% and 0.9%.

Source : October 2015/Savills/London/OFF