The PROPERTY DOCTORS, Sydney Australia Novak Properties

EP. 1520 WHY DOES RENTAL YIELD MATTER, THE MOST POWERFUL WORD IN COMMERCIAL PROPERTY

β€’ Mark Novak, Michael Burgio β€’ Season 52 β€’ Episode 1520

πŸ’‘ YIELD β€” the most powerful word in commercial property.

Here’s the crash course ⬇️
πŸ“Š Yield = annual rent Γ· property value.
πŸ‘‰ Gross yield = rent before expenses.
πŸ‘‰ Net yield = rent after outgoings (council, strata, land tax etc).
πŸ‘‰ Triple net = tenant covers everything.

Why it matters:

  • In residential, yield is rarely the focus β€” buyers chase capital growth.
  • In commercial, yield can literally make (or lose) you $$$.
  • Secure a tenant on a higher rent, and your property’s value jumps overnight.

Example: one shop went from $700K to $910K in just weeks β€” only difference? A tenant locked in.

πŸ”‘ Pro tip: always ask whether quoted yield is gross, net, or triple net before you buy.

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