Commercial property investing involves investing in income producing real estate primarily used for business purposes, rather than residential living.

Types of commercial property

Common commercial property sectors in Australia include:

• Office buildings
• Retail properties (shopping centres, retail strips)
• Industrial and logistics facilities
• Healthcare properties
• Hotels and other specialised assets

How commercial property investing works? 

Investors earn returns through:

• Rental income paid by business tenants, often under longer term leases
• Capital growth if the property increases in value over time

Investors can gain exposure by:

• Purchasing property directly
• Investing through commercial property funds, syndicates, or trusts

Key characteristics

Commercial property investing typically features:

• Longer lease terms than residential property
• Higher income potential, often with rent linked to inflation
• Lower liquidity, especially for direct investments
• Higher minimum investment amounts, particularly for direct ownership

Who it suits

Commercial property investing is generally suited to investors seeking:

• Regular income
• Exposure to real assets
• Long-term investment horizons
• Diversification beyond residential property and shares