Learn about commercial property investment

Commercial property can offer income, diversification and exposure to assets outside the residential market that many investors have not accessed directly. The starting point is understanding how funds are structured, how income is generated and where the risks sit.

Industrial property covers warehouses,facilities and distribution centres, a sector shaped by e-commerce and the movement of goods. For investors, performance tends to rest on location: proximity to transport routes and customers, and the scarcity of well-placed sites, rather than the sector label.

Office real estate has changed markedly since 2020, with tenant demand shaped by location, design, natural light and amenity. Newer buildings are more likely to offer these, though older buildings refurbished to a modern standard can be just as attractive. For investors, building quality and the manager behind it tend to matter more than age alone.

Real estate debt takes a different position from owning property. Instead of holding assets, these funds lend capital secured against commercial real estate, which can give investors an income-focused return with property as collateral and defined terms for repayment.