July 2027
Front Cover: Cube One, Victor Cresecnt, Narre Warren Inside Cover: Pinterest
THE BEGINNER’S GUIDE TO COMMERCIAL INVESTING
If your experience has mostly been in residential real estate, commercial property might feel like a big leap. But for many investors, it quickly becomes a smart way to build income stability, diversify your portfolio and tap into opportunities that behave very differently to houses or units.
According to Shannon Hynd, Commercial Department Manager at First National Real Estate Neilson Partners, one of the biggest mindset shifts for new investors is understanding how closely a property’s performance is tied to the tenant. “In commercial property, the value is intrinsically linked to the tenant and the strength of their lease. Choosing wisely is absolutely critical,” says Shannon.
Unlike residential property, commercial leases are often longer-term and tenants usually take on a bigger portion of the outgoings - sometimes including rates, insurance and even land tax depending on the lease. That makes rental income more predictable and can help investors see stronger yields, often 5% or higher, depending on the type, location and risk profile of the property
A strong lease is one of the biggest advantages of commercial property. Unlike residential investing, where the focus is largely on the property itself, in commercial real estate the tenant and lease are just as important. A well-secured lease - ideally with time still remaining - can provide confidence around income stability and asset valuation.
As Kaye Nelson-Hill and Blair Polozani from Keychange Finance explain: “The strength of the lease and tenant covenant is a major factor in how the deal is assessed ”
Commercial property also offers a diverse range of investment options, from industrial warehouses and retail shops to office spaces, medical suites, childcare centres, and strata opportunities. A well-balanced portfolio often blends these different sectors to manage risk while maintaining consistent income.
There’s flexibility in how investors enter the market, too. Some commercial assets can even be purchased through Self-Managed Super Funds, which continues to attract long-term investors looking to build retirement-focused portfolios.
Across Melbourne’s south-east growth corridor - including Berwick, Pakenham and Narre Warren - demand for welllocated commercial property remains strong, especially for assets backed by quality tenants and long-term leases
The added benefit, according to Key Change Finance, is that funding these purchases has never been easier, with banks and lenders far more flexible on higher LVR's than ever before. Longer loan terms, greater flexibility on rates and types of repayments has made commercial investing as easy and desirable as residential
Ultimately, commercial property investment is less about speculation and more about strategy. Tenant quality, lease strength, and location are the fundamentals that drive success. As Shannon Hynd sums it up: “When you get those fundamentals right, commercial property can be an incredibly powerful long-term investment tool.”
If you’re considering stepping into commercial property for the first time, the team at First National Real Estate Neilson Partners can guide you through every stage - from understanding the market to securing the right asset for your goals.
Ready to explore commercial investment opportunities?
Contact our team today and make your next move with confidence on (03) 9705 4888.
EXCEPTIONAL INDUSTRIAL INVESTMENT | SECURE LEASE | PRIME COURT LOCATION FOR SALE
$1,150,000$1,250,000
Shannon Hynd 0499 980 100
Todd McKenna 0418 391 182
6 EMBREY STREET PAKENHAM
4/29 SHARNET CIRCUIT PAKENHAM
INDUSTRIAL OPPORTUNITY WITH VACANT POSSESSION WITH 4 CARPARKS
Floor Area 183m²
FOR SALE
$500,000$550,000
Shannon Hynd 0499 980 100
Flynn McKenna 0499 999 162
2856 PRINCES HWY PAKENHAM
HIGHLY EXPOSED GARFIELD INVESTMENT FOR SALE
Land Area 3,235m²
Floor Area 595m²
$800,000$880,000
Shannon Hynd 0499 980 100
Todd McKenna 0418 391 182
71-75 HIGH STREET, BERWICK
CHARMING TUDOR LANDMARK WITH DEVELOPMENT UPSIDE FOR SALE
Offers over $4,000,000
Shannon Hynd 0499 980 100
Flynn McKenna 0499 999 162
Land Area 1,034m²
Floor Area 350m²
7-9 HIGH STREET BUNYIP
UNIQUE OPPORTUNITY WITH UP TO 3 SEPARATE TENANCIES FOR RENT
$35,000 + GST and outgoings
Flynn McKenna 0499 999 162
Shannon Hynd 0499 980 100
Floor Area 138m²
1/57 HIGH STREET BERWICK
THE HEART OF BERWICK
Floor Area 90m²
FOR RENT
$57,000 + GST and outgoings
Flynn McKenna 0499 999 162
Shannon Hynd 0499 980 100
$897,500 excluding GST
Floor Area 412m²
$830,000$910,000
Flynn McKenna 0499 999 162
Floor Area 200m² | Land Area 586m²
$75,000 + GST and outgoings
Floor Area 130m² | 6 car parks
50 INTREPID STREET BERWICK FOR SALE
154 PRINCES HIGHWAY PAKENHAM
30B CLYDE ROAD
BERWICK
Land Area 1,894m² | Floor Area 46m²
Floor Area 50m²
NAR NAR GOON
PAKENHAM
NARRE WARREN BERWICK PAKENHAM