Commercial Property Yield Explained for Everyday Investors

Commercial property can look straightforward from the outside. A tenant pays rent, the owner collects income, and the property either grows in value or it doesn’t. But once you start looking more closely, the numbers can become a lot more layered. Purchase price, rental income, lease terms, outgoings, vacancies, incentives and future growth all influence whether a property is actually performing well. In this quick post, we explain what commercial property yield is in layman’s terms.

Photo of new condos in Butchertown in Louisville, KY - Commercial Property Yield Explained for Everyday Investors
It can be difficult for new real estate investors to know how to calculate commercial property yield. | Photo by Angry Aspie
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