Compared to our last Analyst, we have increased our expectations for rental growth in some markets, and also pushed down our near term forecasts for property yields. Yet in most markets, lower yields in 2017 will lead to greater upward yield pressure in the later stages of our 2016-2020 forecast period. That’s particularly true in the retail sector, where yields currently look especially low. In terms of total returns, despite weaker rental prospects, the high level of yields on offer means that industrial property should outperform office and retail.
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