Commercial Property Yield Calculator for Australian Investors
Built for Australian owners, buyers and commercial agents. Enter a price and the rent to see gross yield, passing yield, yield on total cost and the reversion gap to market.
Passing yield
5.76%
After running costs you earn 5.76% today on net operating income of $144,000.
Indicative estimate only, based on your inputs. A registered valuer capitalises market income with adjustments a calculator cannot make.
How it is calculated
Gross yield divides total income, base rent plus recovered outgoings, by the purchase price. It gives you a quick read on an asking price.
Passing yield divides net operating income by the purchase price. Net operating income takes gross income and removes total property outgoings and landlord non-recoverables, so it shows what an owner keeps today.
Yield on total cost divides the same net operating income by the price plus acquisition costs, which is your true entry yield once duty, legals and due diligence are paid.
Market yield rebuilds net operating income using your estimate of net market rent. The reversion gap is market yield less passing yield, so a positive number points to income upside at the next market review.
Australian benchmarks
As at 23 September 2026. Benchmarks refresh quarterly.
| Market | Figure | Source |
|---|---|---|
| Sydney industrial, prime | 5.21% average | Colliers Q1 2026 |
| Western Sydney industrial, prime | 4.75% to 5.75% | Knight Frank Q1 2026 |
| National super prime industrial | 5.7% midpoint | CBRE Q1 2026 |
| Sydney CBD office | A-grade 6.42%, B-grade 7.11% | Cushman & Wakefield Q1 2026 |
Yields move with sector, grade, covenant and lease term. Use the band for the same asset type as a sense check, not as a price.
Australian rules that change the maths
Acquisition costs vary by state and by the date of the transaction, and Victoria is moving commercial and industrial property to an annual property tax regime. Confirm the current duty position with your adviser before you rely on the yield on total cost.
Land tax treatment shifts the non-recoverables line. Retail leases in Victoria and Queensland block land tax recovery, so that cost stays with the owner and lowers passing yield.
Commercial rents are usually quoted excluding GST. Keep price and rent on the same basis so the yield stays consistent.
Questions about this calculator
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Open calculatorGeneral information only. Every figure is an indicative estimate based on the numbers you enter and is not a valuation, financial advice or tax advice.
Track these numbers against real leases in rePrecinct.
rePrecinct keeps rents, reviews, outgoings and expiries beside every property, contact and deal, so your team works from one source of truth.
