For many investors, buying commercial property is a bold next step — one that can lead to long-term income, better returns, and more control over your portfolio. At PropertyNXT, we work closely with overseas buyers and local investors across Australia to help them make smarter commercial purchases.
Whether you’re eyeing your first retail unit, a leased warehouse, or something more niche like medical or industrial assets — this guide will walk you through what to expect, how to prepare, and what to avoid when buying commercial property in Australia.
Why Buy Commercial Property?
Commercial real estate offers benefits beyond what residential typically provides:
- Higher rental yields (typically 5–10%)
- Longer lease terms (often 3–10 years)
- Lower overheads (tenants often pay outgoings)
- Diverse tenant base (from logistics to government)
It’s an asset class well-suited to income-focused investors, SMSFs, and those looking to reduce hands-on management.
Types of Commercial Properties You Can Buy
When searching for commercial assets to purchase, you’ll typically come across five main types — each with distinct pricing, demand trends, and tenant expectations. Here’s a deeper dive into what to expect from each category:
1. Retail
Retail spaces include street-facing shops, food outlets, hair salons, convenience stores, and service-based businesses. These are typically located in high-footfall areas like strip malls, neighbourhood centres, or CBD precincts.
- Typical yield: 4.5%–7.5%
- Tenants: Cafés, beauty salons, grocers, takeaway outlets
- Risks: Sensitive to consumer spending and foot traffic
- Ideal buyer: Investors seeking visibility and consistent trade exposure
2. Office
Office properties can range from strata-titled units in suburban office parks to full-floor spaces in CBD towers.
- Typical yield: 5%–8% depending on location
- Tenants: Professionals, legal firms, agencies, SMEs
- Trends: Growing demand for hybrid/flexible office fit-outs
- Ideal buyer: Investors focused on longer leases with white-collar tenants
3. Industrial
Industrial real estate includes warehousing, distribution centres, and light manufacturing spaces — one of the most resilient sectors in recent years.
- Typical yield: 5.5%–9%
- Tenants: Logistics firms, wholesalers, trades
- Demand drivers: E-commerce growth, last-mile delivery, infrastructure
- Ideal buyer: Investors seeking stable cash flow and strong land value
4. Medical & Allied Health
Medical tenancies offer long-term leases and reliable tenants. Properties may include GP clinics, physiotherapy centres, dental surgeries, and specialist rooms.
- Typical yield: 4.5%–6.5%
- Tenants: Health professionals, diagnostic labs, clinics
- Trends: Increasing demand driven by ageing population and healthcare decentralisation
- Ideal buyer: SMSFs and investors seeking minimal vacancy risk
5. Mixed-Use
Mixed-use properties combine commercial and residential functions — such as a shop downstairs with a residence above. These can be strata-titled or freehold.
- Typical yield: Varies (commercial portion often 5%–7%)
- Tenants: Local service businesses, small retailers
- Considerations: Different zoning and management rules apply
- Ideal buyer: Investors wanting asset flexibility and rental diversity
Understanding the nuances between these asset types can help align your purchase with your cash flow goals, risk appetite, and management style.
The Buying Process: Step-by-Step
Here’s how we guide our clients through the buying journey:
1. Define Your Strategy: Yield-driven, capital growth, or value-add?
2. Secure Pre-Approval: Commercial lending differs from residential — allow time for documentation.
3. Source Listings: Includes both on-market and exclusive off-market opportunities.
4. Conduct Due Diligence:
- Title and zoning checks
- Lease reviews (length, rent reviews, termination clauses)
- Building condition and outgoings
5. Negotiate & Exchange: Make an offer with favourable terms.
6. Settlement & Transition: Finalise finance, legal transfer, tenant introductions if applicable.
The process takes longer than a typical home purchase — but that extra time creates room for better negotiation.
Key Considerations Before Buying
- Lease Terms: A 10-year lease with a blue-chip tenant carries very different risk than a month-to-month agreement.
- Zoning & Permits: Ensure the use is legal and future-proofed.
- Tenant Quality: Financials, brand strength, and lease history matter.
- Asset Liquidity: If you need to sell — who’s your future buyer?
- Market Trends: Understand vacancy rates, upcoming supply, and infrastructure plans.
PropertyNXT provides full pre-purchase reports to support your decision-making.
Post-Purchase Strategy: Getting the Most From Your Asset
Your commercial property should work as hard as you do. Consider:
- Upgrading or reconfiguring the space to suit evolving tenant needs
- Negotiating rent escalations at renewal points
- Adding signage income, storage, or parking options
- Holding in a trust or SMSF for tax efficiency (check with your accountant)
We help clients not just buy — but build long-term asset performance.
A Word from Cilla & Luke
“We’ve walked through warehouses with first-time investors and stood outside medical centres with seasoned buyers — and the truth is, the property itself is only half the story. The real power comes from clarity: knowing why you’re buying, how it fits your plan, and what success looks like 5, 10, 15 years down the line. That’s how we help our clients buy with confidence, not just contracts.”
FAQs About Buying Commercial Property in Australia
Q1: Do I need a commercial agent or can I go direct?
Working with an experienced commercial agent gives you access to better data, off-market listings, and stronger negotiation support.
Q2: Can foreigners buy commercial property in Australia?
Yes — with the right FIRB approval and finance structure. PropertyNXT specialises in helping overseas buyers enter the market.
Q3: Is GST applicable on the purchase price?
It depends. Some properties are sold as a ‘going concern’ which may exempt GST. Always confirm with your solicitor.
Q4: What’s the difference between buying tenanted and vacant?
Tenanted offers income from day one, while vacant gives more flexibility (and risk).
Q5: How do I get started?
Reach out to our team and we’ll help align your goals to the right opportunities — from strategy to settlement.
Ready to Buy Smart?
Our team at PropertyNXT goes beyond listings — we work side by side with you to plan your investment, access exclusive deals, and support your long-term goals.
💬 Let’s Build Something Together
At PropertyNXT, we’re more than agents — we’re your partners in building long-term wealth. Whether you’re buying your first overseas property or adding to a growing portfolio, Cilla & Luke are here to guide you every step of the way.
📲 WhatsApp us: +65 8161 6941
📩 Or send us a message to book your free consultation
