Investors are opting for '˜quality over quantity'
A second quarter investments report by LSH highlighted that demand for good quality industrial property remains high in the south east, where average rent yields were driven down to 4.3 per cent in the second quarter of 2018, against a background of higher property prices.
The report also showed the total value of commercial property transactions in the south east in Q2 stood at £860m, down 43 per cent on the previous quarter and a drop of 25 per cent year on year, as investors pick and choose carefully.
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Hide AdJerry Vigus, director of capital markets and industrial and logistics at LSH's south coast offices, said: '˜These figures demonstrate investors are focusing on quality assets, while continued high levels of demand are keeping property prices high, and rental yields are becoming lower as a result.Â
'˜The south remains a key area for investment in industrial and warehousing, due to continued occupier demand and a lack of supply.'Â