What 30 Months of Transaction Data Tells Us About North East Commercial Property

The commercial property landscape has navigated a maze of macroeconomic shifts over the past two and a half years. We recently analysed the yields of all investment sales and acquisitions undertaken by Delta Capital Property Investment, dating back to when the business was first formed in September 2023.

This data is based on properties transacted across the whole of the North East of England, stretching from North Yorkshire up to Northumberland, and across to Darlington in the west and the North East coastline in the east.

When we hold our proprietary transaction data up against recent Q1 2026 market intelligence from agencies like Savills and Knight Frank, several distinct trends emerge across different sectors.

Our data shows single let food stores trading at incredibly tight yields of 4.96% and 5.81% for new builds. This aligns perfectly with the broader market flight to safety. Knight Frank early 2026 Prime Yield Guide places supermarket and discounter yields firmly in the 4.50% to 4.75% bracket.

Despite economic headwinds, the grocery sector remains the ultimate defensive play where investors are actively willing to pay a premium for the secure and long term income that prime food stores provide.

High street retail dominates our transaction volume but the yield spread is wide and highly nuanced. Our single let high street assets typically range from 6.80% to 9.98% while multi let high street properties show yields stretching from 7.33% right up to 13.22%.

Savills recently noted that retail consolidated its position as a top performing asset class going into 2026, delivering excellent total returns driven primarily by income. The yields we are seeing in our portfolio perfectly reflect Knight Frank benchmark of 7.00% for regional cities and 10.00% for good secondary locations.

What our data proves is that the high street is not dead; it has simply been repriced. For investors willing to manage multi let assets or acquire in strong secondary locations, there are double digit income returns on the table.

A standout in our analysis is the neighbourhood parade and shopping centre sector with yields coming in sharply at 6.39% for new builds and older stock hovering around 7.90% to 8.60%. Consumers continue to heavily value local convenience led retail housing essential services making them highly resilient to online shopping penetration.

Our industrial deals show a healthy and varied spread with single let storage and distribution at 6.97% and multi let manufacturing between 8.79% and 10.73%. Conversely our multi let out of town office transaction sat at a much softer 10.91%.

The industrial sector has stabilised after a period of rapid yield compression and subsequent correction, highlighting the continued premium for quality logistics space.

On the flip side the office yield perfectly mirrors the national narrative where Knight Frank data pegs secondary regional and out of town business parks exactly in the 10.50% to 11.50% plus range. The office sector remains heavily polarised with secondary assets trading at high yields to compensate investors for elevated vacancy risks.

If you would like any specific examples of transactions completed by Delta Capital Property Investment or how we can help with your investment requirements

, please get in touch:

Daniel Capobasso MRICS

Managing Director, Delta Capital Property Investment

Mob: 07968 618 948

Email: dc@deltacap.co.uk

Daniel Capobasso is a commercial property investment advisor and Managing Director of Delta Capital Property Investment, specialising in investment transactions and asset management in the North East of England.