Bulky goods centres offer highest retail property yields: Chart of the week

Bulky good centres provided the highest return to retail property investors in 2012, according to the latest Jones Lang LaSalle shopping centre investment review.

Yields on bulky good centres were stable over 2012 at 9.55% with neighbourhood centres offering the second best return of 8.51% up marginally compared with 2011.

The lowest yields (6.28%) are on offer for the most expensive assets sought by mainly institutional investors - regional shopping centres.

"With spreads wide on so many measures, it presents investors with certain risks and opportunities.

"It suggests asset repositioning can potentially be more rewarding and that there is potential capital growth to be derived as spreads ultimately narrow to long-term average levels.

"Some investors have emerged to take advantage of some of these trends, particularly in bulky goods and sub-regional sectors," says Jones Lang LaSalle.