09/09/2026
The rent didn't change. So why did the value?
That's one of the most important relationships to understand when analysing commercial property.
Take the same £50,000 annual rent.
At a 10% yield → £500,000
At an 8% yield → £625,000
At a 6% yield → £833,333
Same income. Very different values.
Which is why looking at a property's yield in isolation can be misleading. A 9% yield might look fantastic on paper — until you understand why the market is demanding that return.
The real questions are:
→ What's driving the yield?
→ What risks sit behind it?
→ How does it compare with similar assets?
→ Is the return sufficient for those risks?
→ What might a future buyer think?
Don't just ask what the yield is. Ask why it is what it is.
And if you've got a deal sitting in your inbox that you're not quite sure how to assess, the NCRE 5-Minute Deal Check is designed to give you a quick first-pass assessment before you commit to deeper analysis.