The speed of reaction of the financial markets to changes in the world economic environment is in stark contrast to the real estate markets. That is why it makes sense for analysts in real estate to examine financial statistics to glean insights into future conditions for real estate and possible lead indicators. The relationship between bond yields and commercial real estate pricing is a well-known one. The impact of changes in the so called ‘risk free rate’ on property yields, given their large income component, is understandable. However, within the bond rate itself, there is further information which can be used to provide additional understanding of the real estate world.This paper utilises the characteristics of the term premium and growth components of the government bond yield to consider what messages they send to the real estate market. The paper will also consider their usefulness as leading indicators on market sectors and spreads.