Logistics Real Estate Yield Calculator
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
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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.
Logistics yield produces a percentage based on the inputs provided.
Inputs
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.
References
Frequently Asked Questions
Typical logistics yields today?
Operating costs as % of rent?
What affects yield?
Residential vs logistics yields?
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