FinToolSuite

Logistics Real Estate Yield Calculator

Updated April 17, 2026 · Investing · Educational use only ·

Annual yield of a logistics property investment.

Calculate rental yield on a logistics or warehouse real estate investment from purchase price and annual rent. Enter operating costs to see gross and net yield.

What this tool does

Enter purchase price, annual rent, and operating costs. The tool shows gross and net yield.


Enter Values

Formula Used
Annual rent
Annual operating costs
Property price

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Disclaimer

Results are estimates for educational purposes only. They do not constitute financial advice. Consult a qualified professional before making financial decisions.

Logistics real estate yields typically run 5-8% gross, slightly higher than office or retail thanks to e-commerce demand. A 2,000,000 warehouse with 140,000 annual rent yields 7% gross. After 20,000 annual operating costs, net yield is 6%. Compare against local benchmarks before committing — yields vary heavily by micro-market and asset grade.

Commercial property analysis.

Quick example

With purchase price of 2,000,000 and annual rent of 140,000 (plus annual operating costs of 20,000), the result is 6.00%. Change any figure and watch the output shift — it's often more useful to see the pattern than to memorise the formula.

Which inputs matter most

You enter Purchase Price, Annual Rent, and Annual Operating Costs. Not every input has equal weight. Flip one at a time toward extreme values to feel which ones move the needle most for your situation.

What's happening under the hood

Net yield = (rent - operating costs) / price. Gross yield = rent / price. The formula is listed in full below. If the number looks off, you can retrace the calculation by hand — that's the point of showing the working.

Where this fits in planning

This is a "what-if" tool, not a forecast. Use it to test ideas before committing: what happens if the rate is 2% lower than hoped, what happens if you add five more years. The value is in the scenarios you run, not the single answer you get from the defaults.

What this doesn't capture

Steady-rate math ignores real-world volatility. Actual returns are lumpy; sequence-of-returns risk matters most in drawdown; fees and taxes drag on compound growth; and behaviour changes in drawdowns can reduce outcomes below the projection. Treat the number as one scenario, not a forecast.

Example Scenario

Logistics yield produces a percentage based on the inputs provided.

Inputs

Purchase Price:2,000,000 £
Annual Rent:140,000 £
Annual Operating Costs:20,000 £
Expected Result6.00%

This example uses typical values for illustration. Adjust the inputs above to match a specific situation and see how the result changes.

Sources & Methodology

Methodology

Net yield = (rent - operating costs) / price. Gross yield = rent / price.

Frequently Asked Questions

Typical logistics yields today?
Core markets 4-6% net. Secondary markets 6-8%. Yields compressed during e-commerce boom and widened somewhat as interest rates rose.
Operating costs as % of rent?
Typically 10-20% for triple-net leases where tenant covers most costs. Higher for full-service leases where landlord covers more.
What affects yield?
Location (proximity to transport hubs), tenant credit quality, lease length, building specification. Premium for modern, long-let, strong tenant.
Residential vs logistics yields?
Logistics typically yields 1-2% higher than residential in the same market — higher risk, no rent controls, commercial tenant focus.

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