Underwrite a shop’s rental income carefully
A shop's proposed rent needs to be examined alongside the costs of ownership and the tenant's ability to use the premises. An advertised yield is not an operating account.
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Published by Astra Terra Properties. Astra Terra analysis and practical guidance. Verify the facts and terms of your own transaction with the appropriate sources and advisers.
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Revised on 3 October 2026 as Astra Terra analysis. Unverified historical market assertions have been removed. The original publication date and URL are retained; this is practical guidance, not a reconstructed news report.
A shop's proposed rent needs to be examined alongside the costs of ownership and the tenant's ability to use the premises. An advertised yield is not an operating account.
Establish the income basis
Identify whether the amount is supported by a current lease, an offer or an agent's estimate. Check occupancy, expiry and the obligations that affect the owner's receipts.
Build the cost side
Obtain recurring charges and investigate repairs, fit-out responsibilities and possible vacancy. Test less favourable assumptions. Keep gross rent, net operating income and a return after financing distinct so the comparison remains understandable.