Value

Gross initial yield

Gross rent divided by the investment.

The gross initial yield is the annual rent divided by the total investment (purchase price plus costs). A low gross initial yield generally indicates a sought-after, low-risk property; a high gross initial yield indicates greater risk or a lower-quality location.

Frequently asked questions about Gross initial yield

What does Gross initial yield mean?

Gross rent divided by the investment.

How does Gross initial yield work in commercial real estate?

The gross initial yield is the annual rent divided by the total investment (purchase price plus costs). A low gross initial yield generally indicates a sought-after, low-risk property; a high gross initial yield indicates greater risk or a lower-quality location.

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