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Commercial Property Yield Calculator

Gross and net yield from purchase price, rent and running costs. Strips holding costs out of the headline number so you can compare deals on a like-for-like basis.

InputsPY.01
ResultLIVE
Net yield · (rent − costs) ÷ price
Gross yield·
Net yield, all-in (incl. acq.)·
Net operating income·
Running cost ratio·
Sector classification
Enter price and rent to see where the yield sits against sector benchmarks.

For illustrative purposes only. Not advice.

Gross versus net yield, quickly

Agents quote gross. Lenders and serious investors look at net. Running costs on UK commercial property typically chew up 10% to 20% of gross rent. On retail and mixed-use that figure can reach 25%+ once void provisions and management are factored in.

The formulas

Gross yield = (Annual rent ÷ Price) × 100
Net yield = ((Annual rent − Running costs) ÷ Price) × 100
Net yield, all-in = NOI ÷ (Price + Acquisition costs) × 100

The all-in net yield includes Stamp Duty Land Tax, legals and agency fees in the denominator. This is the truer return-on-capital number, particularly above the £500k SDLT threshold where the upfront cost is material.

UK commercial yield benchmarks, 2026

  • Prime industrial / logistics · 4.5% to 5.5% net.
  • Prime office, central, single covenant · 5.0% to 6.0% net.
  • Mid-market industrial estate · 6.0% to 7.5% net.
  • Mixed-use, urban · 6.5% to 8.0% net.
  • Secondary office, regional · 7.5% to 9.0% net.
  • Retail, high street, multi-let · 7.5% to 10%+ net.
  • Leisure, healthcare, specialist · 8.0%+ net.

Worked example

Multi-let industrial estate, Yorkshire. Purchase price £1.75m. Gross rent £140,000. Running costs £22,000 (management, voids, repairs, insurance). Acquisition costs £95,000 (SDLT plus legals).

Gross yield: £140,000 ÷ £1,750,000 = 8.0%
Net yield: £118,000 ÷ £1,750,000 = 6.7%
Net yield, all-in: £118,000 ÷ £1,845,000 = 6.4%

At a 65% LTV loan, the £118k NOI supports a debt yield of 12% · well inside the 8.5 to 10.5% range. Plenty of cover for a commercial mortgage application.

Reminder. For illustrative purposes only. These calculators are educational. They are not advice. Actual lender pricing and underwriting decisions depend on covenant, LTV, sector, property condition and dozens of factors a calculator does not see. Always validate with a regulated advisor before committing to finance.

Frequently asked

What is gross yield on commercial property?

Gross yield is annual rent divided by purchase price, expressed as a percentage. It is the headline yield quoted in agent particulars. It does not deduct running costs.

What is net yield on commercial property?

Net yield is annual rent minus annual running costs (management, voids, repairs, insurance, ground rent, service charge shortfalls), divided by purchase price. It is the true cash yield to the investor after holding costs.

What are typical UK commercial property yields in 2026?

Prime industrial / logistics: 4.5% to 5.5%. Prime office: 5.0% to 6.0%. Mid-market industrial: 6.0% to 7.5%. Mixed-use: 6.5% to 8.0%. Secondary office: 7.5% to 9.0%. Retail high street: 7.5% to 10%+. Leisure and specialist: 8.0%+.

How does yield relate to a commercial mortgage?

Yield drives the loan size a lender will offer because it drives rental income, which drives ICR and debt yield. A 7% net yield on a £1m purchase produces £70k of rent. At 65% LTV (£650k loan) and a 7.5% stressed rate, ICR is £70k / (£650k × 7.5%) = 144%. Just inside threshold.

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