
The PROPERTY DOCTORS, Sydney Australia Novak Properties
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The PROPERTY DOCTORS, Sydney Australia Novak Properties
EP. 1520 WHY DOES RENTAL YIELD MATTER, THE MOST POWERFUL WORD IN COMMERCIAL PROPERTY
π‘ YIELD β the most powerful word in commercial property.
Hereβs the crash course β¬οΈ
π Yield = annual rent Γ· property value.
π Gross yield = rent before expenses.
π Net yield = rent after outgoings (council, strata, land tax etc).
π 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 propertyβs value jumps overnight.
Example: one shop went from $700K to $910K in just weeks β only difference? A tenant locked in.
π Pro tip: always ask whether quoted yield is gross, net, or triple net before you buy.
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