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Knight Frank, an International Real Estate Consultancy, recently reported the following Net Initial Yields (Cap Rates) for Australian Industrial property: Prime Modern Industrial Parks 4.50%

Knight Frank, an International Real Estate Consultancy, recently reported the following Net Initial Yields (Cap Rates) for Australian Industrial property:

Prime Modern Industrial Parks4.50%
Secondary Industrial

5.75% +

Briefly explain why there is a difference in the yields. 

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