Island 4 of 6
Commercial Property
Own the buildings and spaces that businesses pay to use.
What this island is about
Commercial property means owning real estate that is leased to businesses rather than individuals. This includes offices, warehouses, factories, retail shops, medical centres, childcare centres and industrial parks. Instead of a tenant paying rent from their salary, a business pays rent as part of its operating costs, often on longer lease terms than residential property.
Where to start
- 1
Learn the language
Read the ASX guide to A-REITs (Australian Real Estate Investment Trusts). They let you access commercial property with smaller amounts of capital and no direct tenant management.
- 2
Visit three commercial properties
Drive past an industrial estate, a suburban shopping strip and a medical precinct. Notice signage, vacancy rates, and the types of businesses operating there.
- 3
Speak to a commercial mortgage broker
Commercial lending is different from residential. A broker who specialises in this space can explain loan terms, deposit requirements, and how lenders assess commercial deals.
Campfire Conversation
The book gave you their story. These questions continue it.
- Have you ever owned or considered owning commercial property? What stopped you or pulled you in?
- What do you look for in a tenant before signing a long-term lease?
- How do you think commercial property is different from residential?
- What's the biggest risk in commercial property that most people underestimate?
- If you were starting again, would you go residential first, commercial first, or neither?
Download the Commercial Property checklist
A printable one-page checklist with the five first steps for this island. Save it, share it, or take it to your next family conversation.
- 1Learn the difference between direct ownership and A-REITs
- 2Compare lease terms: length, rent reviews and tenant responsibilities
- 3Understand cap rates and how they affect valuation
- 4Research one commercial sector: office, retail, industrial or healthcare
- 5List the risks that differ from residential property
The book that turns lessons into a legacy
The Archipelago teaches the thinking. The Six Islands book is where a parent writes the story behind the money: the mistakes, the wins, and what they want their child to remember.