Commercial
Commercial property investment in Australia includes office, retail and industrial assets leased to business tenants under structured lease agreements.
For investors, commercial properties can provide stronger income visibility through longer lease terms and defined rent reviews, supporting predictable cash flow and portfolio diversification.
Commercial investments are often suited to buyers seeking scalable property strategies beyond residential, with returns influenced by tenant quality, lease conditions and asset location. In the right market, commercial property can offer compelling income performance alongside long-term value growth.
Featured
SMSF
- $ 896,500
Gross Return
$ 41,600
$ 41,600
Gross Yield
4.64%
4.64%
Capital Growth
3.25%
3.25%
Vacancy Rate
0.01%
0.01%
Lot G.W9 Neue Space, Heidelberg West VIC
Heidelberg West, Melbourne, VIC, 3081
Commercial
Featured
SMSF
- $ 896,500
Gross Return
$ 41,600
$ 41,600
Gross Yield
4.64%
4.64%
Capital Growth
3.25%
3.25%
Vacancy Rate
0.01%
0.01%
Lot G.W6 Neue Space, Heidelberg West VIC
Heidelberg West, Melbourne, VIC, 3081
Commercial
Featured
SMSF
- $ 1,222,100
Gross Return
$ 49,920
$ 49,920
Gross Yield
4.08%
4.08%
Capital Growth
3.25%
3.25%
Vacancy Rate
0.01%
0.01%
Lot G.W3 Neue Space, Heidelberg West VIC
Heidelberg West, Melbourne, VIC, 3081
Commercial
Featured
SMSF
- $ 987,250
Gross Return
$ 45,760
$ 45,760
Gross Yield
4.64%
4.64%
Capital Growth
3.25%
3.25%
Vacancy Rate
0.01%
0.01%
Lot G.T1 Neue Space, Heidelberg West VIC
Heidelberg West, Melbourne, VIC, 3081
Commercial
Featured
SMSF
- $ 987,250
Gross Return
$ 45,760
$ 45,760
Gross Yield
4.64%
4.64%
Capital Growth
3.25%
3.25%
Vacancy Rate
0.01%
0.01%
Lot G.T7 Neue Space, Heidelberg West VIC
Heidelberg West, Melbourne, VIC, 3081
Commercial
Featured
SMSF
- $ 915,200
Gross Return
$ 42,120
$ 42,120
Gross Yield
4.6%
4.6%
Capital Growth
3.25%
3.25%
Vacancy Rate
0.01%
0.01%
Lot G.T15 Neue Space, Heidelberg West VIC
Heidelberg West, Melbourne, VIC, 3081
Commercial
Featured
SMSF
- $ 987,250
Gross Return
$ 45,760
$ 45,760
Gross Yield
4.64%
4.64%
Capital Growth
3.25%
3.25%
Vacancy Rate
0.01%
0.01%
Lot G.T2 Neue Space, Heidelberg West VIC
Heidelberg West, Melbourne, VIC, 3081
Commercial
Featured
SMSF
- $ 987,250
Gross Return
$ 45,760
$ 45,760
Gross Yield
4.64%
4.64%
Capital Growth
3.25%
3.25%
Vacancy Rate
0.01%
0.01%
Lot G.T3 Neue Space, Heidelberg West VIC
Heidelberg West, Melbourne, VIC, 3081
Commercial
Featured
SMSF
- $ 987,250
Gross Return
$ 45,760
$ 45,760
Gross Yield
4.64%
4.64%
Capital Growth
3.25%
3.25%
Vacancy Rate
0.01%
0.01%
Lot G.T4 Neue Space, Heidelberg West VIC
Heidelberg West, Melbourne, VIC, 3081
Commercial
Featured
SMSF
- $ 987,250
Gross Return
$ 45,760
$ 45,760
Gross Yield
4.64%
4.64%
Capital Growth
3.25%
3.25%
Vacancy Rate
0.01%
0.01%
Lot G.T5 Neue Space, Heidelberg West VIC
Heidelberg West, Melbourne, VIC, 3081
Commercial
Featured
Sold
SMSF
Under construction
- $ 427,586
Gross Return
$ 19,050
$ 19,050
Gross Yield
4.46%
4.46%
Capital Growth
4.99%
4.99%
Vacancy Rate
0.01%
0.01%
Lot G.15 Kubed, Coburg North VIC
Coburg North, Melbourne, VIC, 3058
Commercial
Featured
Sold
SMSF
Build Complete
- $ 1,022,097
Gross Return
$ 48,400
$ 48,400
Gross Yield
4.74%
4.74%
Capital Growth
4.99%
4.99%
Vacancy Rate
0.01%
0.01%
Lot 24 Kubed, Coburg North VIC
Coburg North, Melbourne, VIC, 3058
Commercial
Frequently Asked Questions
Commercial property is real estate leased for business use. Office, retail, industrial or warehouse, and similar rather than for living in. The key structural differences from residential are longer leases, lease terms under which the tenant pays most or all of the outgoings, higher yields, and greater sensitivity to economic conditions and to the strength of the individual tenant.
Because it carries different risks and a different lease structure. Longer leases with fixed or indexed rent increases, and tenants who cover outgoings, produce higher and more predictable net income compensation for longer potential vacancies, greater economic sensitivity and lower liquidity. Commercial net yields are generally higher than residential as a result.
Under a net lease, the tenant pays defined property outgoings council and water rates, insurance, certain maintenance on top of base rent; under a gross lease, those costs are built into the rent. The more outgoings the tenant covers (a “triple net” lease being the most owner-favourable), the higher and cleaner the landlord’s net return. Always check whether an advertised yield is gross or net.
Commercial leases commonly run for several years, often with options to renew, and typically include structured rent reviews fixed annual increases or increases linked to inflation. These built-in increases lift income over the lease term and, because value is tied to income, also lift the property’s capital value. The lease and its review mechanism are central to the investment.
Commercial lending is more conservative than residential lenders generally require a substantially larger deposit, assess the strength and length of the lease and the quality of the tenant heavily, and may offer shorter loan terms. The lease is effectively part of the security, so a strong tenant on a long lease improves both value and borrowing terms.
Yes, unlike residential rent, GST generally applies to commercial leases and sales, with specific exceptions such as a sale as a “going concern.” Because GST and the associated reporting attach to commercial leasing, it needs to be factored into pricing and cash flow, and it is an area to get accounting advice on.
Vacancy and tenant risk. Commercial vacancies can last considerably longer than residential, re-leasing often requires incentives and fit-out contributions, and your income depends on the financial strength of the tenant. Underwriting the tenant’s covenant, the lease length, and the depth of demand for that location and asset type is the core of commercial investing.
Generally, less liquid the buyer pool is smaller and more specialised, sales can take longer, and values are sensitive to the lease in place and to economic conditions. This illiquidity is part of why commercial yields are higher, and it means commercial suits investors with a longer holding horizon.
Commercial property is valued mainly on the income it produces rather than on comparable sales the way homes are broadly, the net rent divided by the market yield (capitalisation rate) for that asset type and location. This is why the lease matters so much: a longer lease to a stronger tenant with built-in rent increases lifts both the income and the value, while a looming vacancy or a weak tenant drags it down. It also means you can grow value actively by improving the lease, the tenant or the rent not only by waiting for the market to rise.
More experienced, income-focused investors who can absorb longer vacancies, understand leases and tenant risk, and are comfortable with greater economic sensitivity and lower liquidity in exchange for higher yields and a more hands-off tenancy, since tenants typically maintain the premises and pay outgoings. It is generally a step up in complexity from residential.
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Capital Growth 12 months, measures the increase in a property’s value over the previous 12 months, indicating how much the investment has appreciated in that timeframe.
Capital Growth 10-year annualised, reflects the average annual increase in a property’s value over the last decade, smoothing out short-term fluctuations to show long-term appreciation trends.
Vacancy Rate, indicates the percentage of properties that are currently unoccupied in that postcode, It’s a key indicator for investors to assess the rental demand.
SMSF Property Investing, when investing inside your SMSF there are some restrictions on how you can purchase investment properties. We use the following information to help navigate the SMSF investment property options.
This property is a single-contract property suitable for an SMSF.
SMSF Single Contract
