Property Yield: What It Is, How It Works, and Where to Find the Best Returns

When you buy a property to rent out, property yield, the annual return you earn as a percentage of the property’s value. Also known as rental yield, it’s the real measure of whether your investment is working for you—not just whether the price went up. A property might look expensive, but if it brings in strong rent, the yield could be better than a cheaper one sitting empty. This number doesn’t care about hype. It cares about rent in the bank, expenses out the door, and what’s left over.

Property yield connects directly to other key ideas like rental income, the actual money tenants pay you each month, and commercial property ROI, how much profit you make compared to what you spent. You can’t talk about yield without understanding property valuation, how much your property is worth right now, not what you paid five years ago. A property’s value changes. So does rent. So does yield. If your property was worth $500,000 last year and now it’s $600,000, but your rent stayed the same, your yield dropped—even if you didn’t do anything wrong.

Some investors chase big cities because they think prices mean profit. But in places like Austin or Melbourne, high prices often mean low yields. Meanwhile, smaller markets or industrial zones might offer 7% or 8% yields because landlords aren’t competing over luxury finishes—they’re just renting out space that businesses need. A warehouse in a growing logistics hub can outperform a 2BHK apartment in a saturated neighborhood. That’s why you need to look beyond the listing photo. What’s the net rent after taxes, repairs, and vacancies? That’s your real yield.

Landlords in Virginia, Maryland, and even parts of West Virginia know this. They don’t rely on appreciation. They rely on cash flow. They calculate square footage correctly, avoid illegal brokerage fees, and know exactly what a Class D home can rent for. They don’t guess. They track. And that’s the difference between someone who owns property and someone who runs a real business with it.

Below, you’ll find real examples from actual listings and market reports. You’ll see how much land costs per acre in 2025, what salary you need to live in Utah, how commercial property values are calculated, and why some banks offer lower rates for commercial loans. You’ll learn where yields are high, where they’re falling, and how to spot a property that’s truly working for you—not just looking good on paper.

What Is a Good Rate of Return on Commercial Property?
1 Dec

What Is a Good Rate of Return on Commercial Property?

by Arjun Mehta Dec 1 2025 0 Commercial Property

A good rate of return on commercial property in 2025 is typically 6-9% net yield. Industrial and medical properties offer the highest returns, while CBD offices lag. Always calculate net income after expenses-not gross rent.

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