Calculating Commercial Property Yield 5 July 2007 at 5:35PM edited 30 November -1 at 12:00AM in House Buying, Renting & Selling 1 reply 1.6K views

Madferrit

Hi,

Hoping for a quick answer as I need to work something out this evening.

Basically, I'm looking for the answer to two things;

1 - What is the correct method in calculating the yield on a commercial property investment.

2 - In the current commercial property market, what would be considered a good yield, with a very good tenent in the property on a strong lease (25 years)?

any help would be greatly appreciated.

Alan_M_2

1. This is actually basic maths, if you need to be told how to calculate it, should you be investing?

2. 25 year leases went out with the ark. I won't sign anything longer than 3 year or I will sign 5 or 10 if it's in my favour and has a break clause.