The Allshop Barometer

The Allshop Barometer, an index of average single let retail net yields achieved in all regions of the United Kingdom separated into three tranches based on unexpired income; Short income (3-5 years), medium income (5-10 years) and long income (10-15 years).

In the past 24 months Allsop have sold 575 (£321.9m) single let retail units falling within one of the three defined tranches, perhaps the largest sample size in the secondary market.

When analysing the results of the barometer it will be little surprise that average net retail yields have softened by 50 basis points standing at 7.9% from 7.4% in 2018. This may well be due to a national portfolio of long let banks sold in 2018, unduly impacting the sample data.

The barometer is showing a north-south divide for net average retail yields with the southern regions all recording sub 6% yields achieved for long income while the northern regions, Wales and Scotland are achieving returns of 6% or greater.

The increase in perceived risk in the retail sector has impacted the short term income yields achieved over the year, with net yields achieved in this income tranche softening in most regions (8.4% from 7.9% in 2018).