How Commercial Property Rental Yields Work
Calculate gross and net yield, understand triple-net leases, and evaluate commercial tenants for stable rental income.
Updated 19 Oct 2026 · PropertyMsia
Gross Yield = (Annual Rent ÷ Purchase Price) × 100
Example: RM8,500/mo × 12 = RM102,000 ÷ RM1,500,000 = 6.8% gross yield
Net Yield accounts for quit rent, assessment, maintenance, and vacancy. Typically 1–2% lower than gross.
What's a good yield? Commercial properties typically yield 5–8% gross in Malaysia, higher than residential (3–5%).
Triple Net Lease (NNN): Tenant pays rent PLUS property tax, insurance, and maintenance. Best for landlords — minimal outgoings.
Tenant evaluation: Check business registration, financial statements, and references. A good anchor tenant (e.g. bank, clinic, F&B chain) anchors your investment.
Example: RM8,500/mo × 12 = RM102,000 ÷ RM1,500,000 = 6.8% gross yield
Net Yield accounts for quit rent, assessment, maintenance, and vacancy. Typically 1–2% lower than gross.
What's a good yield? Commercial properties typically yield 5–8% gross in Malaysia, higher than residential (3–5%).
Triple Net Lease (NNN): Tenant pays rent PLUS property tax, insurance, and maintenance. Best for landlords — minimal outgoings.
Tenant evaluation: Check business registration, financial statements, and references. A good anchor tenant (e.g. bank, clinic, F&B chain) anchors your investment.
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