Commercial Property Yield & ROI Calculator
Appraise Gross Yield, Net Operating Yield, and Leveraged Cash-on-Cash Return. Model commercial mortgage debt up to 75% LTV to optimise corporate balance sheet returns.
Evaluating UK Commercial Property Yields & Return on Equity?
Explore our Commercial Mortgages facility or read the macroeconomic forecast in our Commercial Property Investment Outlook.
Commercial Rental Yield & Cash-on-Cash ROI Calculator
Calculate Gross Yield, Net Operating Yield, and Leveraged Cash-on-Cash Return on corporate equity.
Debt Facility: £525,000 (Annual Interest: £30,188)
Corporate Capital Structure & Cash Required
Typical Commercial Yields by Asset Class
Average prime and secondary yields across UK commercial property sectors.
Industrial & Logistics
Highest institutional demand, low obsolescence, robust rental growth.
Offices & Business Parks
Strong yields for Grade-A space with solid ESG credentials and blue-chip covenants.
Retail & High Street
High cash yields with value-add potential through upper-floor residential conversions.
Mixed-Use Commercial
Diversified risk profile combining commercial shop leases with residential tenant demand.
Frequently Asked Questions on Commercial Yields
What is the difference between Gross Yield and Net Yield in commercial property?
Gross Yield simply divides the annual contracted rent by the purchase price without considering costs. Net Yield deducts all landlord operational expenditure (non-recoverable service charges, property management fees, commercial insurance, and repair reserves) from the rent to arrive at Net Operating Income (NOI) before dividing by the asset value.
What is Cash-on-Cash Return (ROI) and why does commercial debt improve it?
Cash-on-Cash Return measures the annual cash surplus generated relative to the actual liquid capital invested (equity deposit, Stamp Duty, and transaction fees). By introducing low-cost commercial mortgage debt (positive leverage), an investor can enhance an un-leveraged 7% property yield into a 10%–14% cash-on-cash equity return.
What are typical commercial property yields across the UK in 2026?
Prime logistics and industrial assets typically trade at 5.25% to 6.50% yields due to strong tenant covenant security. High-spec regional offices achieve 6.50% to 8.00%, while retail parades, secondary commercial, and mixed-use properties frequently yield 7.50% to 9.50%+.
How do Full Repairing and Insuring (FRI) leases protect commercial yields?
Under a commercial FRI lease, the tenant is legally responsible for all internal and external maintenance, repairs, outgoings, and building insurance. This ensures that the gross rent closely mirrors the net operating income with minimal landlord cost leakage.
Related Commercial Property Finance Tools & Insights
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Development Finance Calculator
Senior debt sizing up to 90% LTC and 70% LTGDV with profit-on-cost checks.
Commercial Stamp Duty Calculator
HMRC non-residential tax slices (0%, 2%, 5%) and residential savings.
ICR Stress Test Calculator
Assess 125%–145% lender stress tests and find max borrowing capacity.
Semi-Commercial Mortgage Calculator
Dual commercial and residential rent split with composite ICR modeling.
Contextual Guidance & Transaction Facilities
Ready to Leverage Your Commercial Acquisition?
Discover how commercial mortgage leverage can maximise your Cash-on-Cash Return. Connect with 100+ UK commercial lenders and specialist underwriters.
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Yield metrics are indicative and do not constitute investment advice. Commercial mortgages arranged for corporate entities are not regulated by the Financial Conduct Authority (FCA). Your property or assets may be repossessed if repayments are not maintained.