{"id":1004569164,"date":"2022-02-28T02:54:43","date_gmt":"2022-02-28T10:54:43","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004569164"},"modified":"2022-12-09T00:39:54","modified_gmt":"2022-12-09T08:39:54","slug":"uk-industrial-property-surged-in-2021-as-median-total-return-topped-30","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/uk-industrial-property-surged-in-2021-as-median-total-return-topped-30\/","title":{"rendered":"UK Industrial Property Surged in 2021 as Median Total Return Topped 30%"},"content":{"rendered":"

Standing Investment; Range of Returns<\/h2>\n
\"\"<\/a>

Source: MSCI<\/p><\/div>\n

Quarter four of 2021 saw commercial property in the United Kingdom record its best single-quarter total return since the fourth quarter of 2009. A quarterly return of 6.3 percent drove the rolling annual total return of the MSCI UK Quarterly Property Index to 16.5 percent, a six year high.<\/p>\n

However, while previous cyclical upswings saw the main property sectors move in relative unison, the current cycle is largely driven by the strength of the industrial property. Of the 16.5 percent annual index return, 12.9 percent could be attributed to the industrial sector courtesy of a 36.4 percent total return.<\/p>\n

By contrast, the office sector recorded a respective annual return of 15.3 percent. Yield compression was the main driver of industrial outperformance as its equivalent yield effectively halved in 10 years as it strengthened to 4.2 percent at the end of 2021 from 8.4 percent in quarter four of 2011.<\/p>\n

The combined impact of a strengthening yield and rental growth saw industrial become the largest sector by value in the Index at 35 percent, up 2.3x over 10 years.<\/p>\n

While industrial was also the top performing sector at the end of 2020, 2021 turned out to be a watershed year for the sector as the median industrial return rocketed from 7.1 percent in 2020 to 31.4 percent in 2021.<\/p>\n

Strong rental growth, low vacancy and record low yields combined for a step change in performance as the sector\u2019s entire returns distribution shifted to the right. So much so that 2021\u2019s 25th<\/sup> percentile of UK industrial return (21.8%) exceeded 2020\u2019s 95th<\/sup> percentile (21.1%).<\/p>\n

\n

MSCI is a leading provider of critical decision support tools and services for the global investment community. With over 45 years of expertise in research, data and technology, we power better investment decisions by enabling clients to understand and analyze key drivers of risk and return and confidently build more effective portfolios. We create industry-leading research-enhanced solutions that clients use to gain insight into and improve transparency across the investment process.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Quarter four of 2021 saw commercial property in the United Kingdom record its best single-quarter total return since the fourth quarter of 200<\/p>\n","protected":false},"author":1805,"featured_media":1004569167,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[37754],"tags":[],"class_list":["post-1004569164","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-research-center-global"],"acf":[],"yoast_head":"\nUK Industrial Property Surged in 2021 as Median Total Return Topped 30% - Commercial Property Executive<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/uk-industrial-property-surged-in-2021-as-median-total-return-topped-30\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"UK Industrial Property Surged in 2021 as Median Total Return Topped 30%\" \/>\n<meta property=\"og:description\" content=\"Quarter four of 2021 saw commercial property in the United Kingdom record its best single-quarter total return since the fourth quarter of 200\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/uk-industrial-property-surged-in-2021-as-median-total-return-topped-30\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2022-02-28T10:54:43+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-12-09T08:39:54+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2022\/02\/322_CPE_global.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"800\" \/>\n\t<meta property=\"og:image:height\" content=\"574\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Niel Harmse\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/uk-industrial-property-surged-in-2021-as-median-total-return-topped-30\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/uk-industrial-property-surged-in-2021-as-median-total-return-topped-30\/\",\"name\":\"UK Industrial Property Surged in 2021 as Median Total Return Topped 30% - 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