Savills: Effective office yields in Sydney exceed 10-year benchmark bond yields by 1.5%


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 Sydney, for instance, headline office rental yields are 6.5%. Allowing for hidden costs borne by the landlord and incentives to tenants, the effective yield is 4.0%. Effective yields exceed benchmark 10-year bond yields in Australia by 1.5%. Globally, the equivalent figures are 4.3%, 3.3% and 0.9%.

Source : October 2015/Savills/Sydney/OFF