What Is Net Equivalent Yield?

Net equivalent yield is a single discount rate that, applied to all of a leased property's cash flows — both the current term rent and the future reversion to market rent — equates them to the price paid, effectively averaging the initial and reversionary yields.

Most useful for: Commercial Investor
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Net Equivalent Yield
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This definition is provided for general educational purposes and is not financial, legal, tax, or real estate advice. Verify important decisions with appropriately qualified professionals.

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