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How far could industrial yields fall?

Industrial yields look likely to reach our end-2021 forecasts by mid-year, leading us to re-evaluate the outlook for pricing. Although gains in rents and capital values are driving increased development, we think investors’ willingness to pay for solid medium-term NOI prospects will support strong demand. The result is that we think yields will fall below 3.8% this year and trend lower still in 2022.

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