What kind of return (yield) can I expect from commercial property investment?

Returns from commercial property usually come from:

• Rental income (net yield) – rent received after costs, compared to the purchase price.
• Capital growth – increase in the property’s value over time.

Target yields vary by location, tenant covenant strength, lease length and property type. Higher-risk assets (shorter leases, weaker locations) may offer higher initial yields, while prime assets with strong tenants tend to offer lower, more stable returns.

We seek for our clients a rental yield of typically no less that 8% and up to 12% depending on the type of property. The capital appreciation would be in addition to this !