One of the things which has been peculiar to the recent boom in values has been a so called yield compression. This means that whereas traditionally there has been a gap of a few percentage points between the yield at which the best quality property sold and that at which secondary quality property sold, today that gap has shrunk to only about one percentage point. Suddenly many people in the market are asking why there is any reason for buying secondary property when they can pay only a slightly higher price and buy the best. A correction in the values of secondary property therefore looks likely.
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This has maintained a strong investor interest, led to significant yield compression and encouraged investors to consider the wider office market.
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He says that as a result of these recent purchases he has achieved better "yield compression". Does this mean that his average rental yield has risen?

Yield compression means the average yield has fallen and therefore the capital value rises. What he means by this is that he gets a lower overall yield for selling the properties in a portfolio than he would do from selling them individually.
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In the jargon this is called "yield compression" but, basically, it is the willingness of investors to accept lower returns on a given stream of rental
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