Commercial yield
Price + rent − vacancy − costs → yield
Parameters
Gross yield
12.0%
Net yield
8.4%
Gross yield = rent×12/price. Net — minus vacancy, utilities, repairs, taxes. Commercial norm: 8–12% net; below 6% — residential rental is better.
Price + rent − vacancy − costs → yield
Gross yield = rent×12/price. Net — minus vacancy, utilities, repairs, taxes. Commercial norm: 8–12% net; below 6% — residential rental is better.