2022 Student Accommodation

CUSHMAN & WAKEFIELD 42

UK SUB-SECTOR YIELDS

Despite yield compression the super-regional PBSA sector remains attractive in comparison to its main ‘alternatives’ cousin Build to Rent (BTR) with a yield differential of +0.6%, as well the more ‘traditional’ logistics sector which has now extended to +1.05%. The very best regional PBSA assets are now on parity with their office sector equivalents at 4.50%. Regional retail yields have bounced back 0.5% since Q1 2021 but remain at a 1.5% discount to PBSA.

REGIONAL YIELD MOVEMENT BY SECTOR (%)

7%

6%

5%

4%

3%

2%

1%

0%

Student housing regional

Residential (Private rented) - regional

Offices - regional

Logistics - regional

Shops - regional

Q1 2018 Q1 2019 Q1 2020 Q1 2021 Q1 2022

Source: Cushman & Wakefield Capital Markets Tracker