Prime yield of office real estate in Central London, England 2022-2023, by submarket
Prime yields in the office real estate market in Central London increased in 2023. In the fourth quarter of the year, the prime yield was the lowest in the Mayfair/St. James, at 3.75 percent. At the other end of the scale were Stratford and Canary Wharf, where the prime office yield was 7.5 percent. Yields are calculated as the ratio of the annual rental value to the cost of a property and measure the income expected from an investment. While lower yields indicate lower return on investment, they are usually a sign of highly competitive markets with strong investment appetite. In recent years, prime office yields in London have maintained levels below four percent.