Commercial property is coming up more frequently in conversations with our clients, particularly those who have traditionally invested in residential property.

Recent changes affecting residential property investment are also prompting investors to look more broadly at the market. From 1 July 2027, new negative gearing restrictions will apply to certain residential property investments, while commercial property remains under the existing arrangements.

For anyone who has never seriously considered commercial property, it may be more accessible than expected.

Commercial does not necessarily mean millions

Smaller industrial units, warehouses and commercial properties can be available below $1 million, depending on the property and location.

For existing property owners, available equity may also be able to contribute towards a purchase.

Commercial lending works differently to residential lending, but the starting point is simple: establishing borrowing capacity, the contribution required and what the repayments could look like.

This can be done before a particular property has even been identified.

There are some important differences

One of the biggest differences is the tenancy agreement.

Commercial tenancies can run for longer periods, such as a 5+5 arrangement, and may include agreed rent increases over the term. Depending on the agreement, certain property outgoings may also be recoverable from the tenant.

These are important differences for anyone accustomed to residential investment property, where tenancy arrangements and owner expenses generally work differently.

Commercial property can also involve different tax, GST and ownership considerations, so an accountant or tax adviser should be involved before purchasing.

What are we seeing?

Our team regularly sees commercial property opportunities through our client and professional network, including stock that is not available to the broader public market.

We are currently seeing opportunities in areas such as Silverwater and can make clients aware of relevant properties as they arise.

Marinko has also recently attended two commercial property auctions, with approximately 10 properties offered at one and 16 at another. Every property offered at those particular auctions sold.

While two auctions are only a snapshot of the broader market, it has been interesting to see that level of activity firsthand alongside the increase in commercial property conversations we’re having with clients.

Commercial property will not be relevant to everyone, but for those curious about what is available, the first step can simply be understanding the numbers.

Our team can establish the finance parameters and, where relevant, share commercial property opportunities coming through our network.