warnie is right..........its an amount per metre squared.......... currently property is returning about 4.75 -5% for retail......and we use this figure to work out the market value of the property.........its a long time since I heard of 10%.....in fact when I bought a property... top location regional city they were using 10%, but now its down to 05% or less...........but don't know about industrial, office or other types of property........usually cpi and market review value are added into the lease, so automatic increases are factored in,,,,,,in my case the former agent had a cosy relationship with the tenant and they had kept the rent low for years...........when I took over and lease expired a year later, the market value of the rent was double what they had been paying........... when you look at the drop from 10% to 5% returns, its not rent going backwards or down that has occured............its the market value of the property that has increased,,,,,,,,the rent goes up in most of the best locations......strip shops are different to main street shops......and restaurants are different again..... the market value of the premises increases so in warnie's example what was a 100,000 example returning 10% or 10,000pa $$$$$ becomes a 300,000 position returning 5% or 15,000 pa you need professionals to assist you, and the prop can be vacant for longer than residential......but then its usually tied up for 10 years...... its a better investment than residential imo cheers
