“Industrial yields range from 4 to 6.5%… you’ve got about 4% or 4.5% rental growth on top… looking at 8% plus total returns. If you’ve leveraged that, you’re getting double-digit cash on cash.”
Inside Commercial Property · #77 - Commercial Property: What's Rising, What's Not, and Why | Scott O'Neill & David Hamilton
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What was described
Report current industrial yields and total returns
4-6.5% yields; ~4% rental growth; >8% total returns; double-digit cash-on-cash when leveraged
Said nearby on the same subject
“Once you've determined that, then you, you want to then make sure that the lease reflects those outgoings. If you don't do that, then your numbers could be totally out and the yield could be totally wrong.”
“What would it take for the bond market to have a negative return over the next 10 years? It would take 14%-15% 10-year yields in the next five to seven years.”
JB
Jim Bianco
Monetary Matters with Jack Farley ·
Hard number14%-15% 10-year yields over the next 5-7 yearsShare this moment
“Higher rates for not terrible reasons… they’re going to cause pressure on rates… yields are higher, that increases your return”