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Calculating Commercial Property Yield

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Calculating Commercial Property Yield

edited 30 November -1 at 12:00AM in House Buying, Renting & Selling
1 reply 1.6K views
MadferritMadferrit Forumite
35 posts
edited 30 November -1 at 12:00AM in House Buying, Renting & Selling
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.

Replies

  • Alan_M_2Alan_M_2 Forumite
    2.8K posts
    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.

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