The Central London shop boom: when and how will it end?

The current boom in Central London standard shop capital values will eventually be put into reverse by a rise in yields. The most likely catalyst for this is shaping up to be a resolution of the euro-zone crisis, a stronger global economy and a drop in investor demand for perceived safe haven assets. The timing for any adjustment in London shop yields is very uncertain, but, in our view, not likely for at least another 12 to 18 months.