4 Smart Ways to Invest in Commercial Property

Which Path is Right for You—and How CapStack Helps You Fund It

Investing in commercial property can deliver reliable income, long-term growth, and real portfolio diversification. But how you invest—the strategy you choose—can significantly affect your returns, level of control, and day-to-day involvement.

Commercial real estate: there are a number of ways to get into the market.

Here are four common and proven ways Australians are accessing commercial real estate. Whether you're an experienced developer or just exploring your next move, this breakdown will help you make more informed decisions.

1. Direct Ownership – Full Control, Full Responsibility

Buying a commercial property outright means you're in the driver’s seat. You choose the location, asset type (e.g. warehouse, retail, office), tenant strategy, and how the property is managed.

Pros:

• You benefit directly from rental income and capital growth.

• You have full control over the asset and decision-making.

• You can reposition or repurpose the property to add value.

  
  

Cons:

• Requires sometimes substantial upfront capital.

• Asset risk is concentrated—if the tenant leaves, income stops.

• You'll either need to self-manage or appoint professionals.

Best for: High-net-worth individuals and investors wanting control and hands-on involvement.

2. Unlisted Commercial Property Funds – Passive, Pooled Exposure

Unlisted funds pool capital from multiple investors to acquire and manage commercial assets. These funds are typically managed by professionals and often include multiple properties to diversify risk.

Pros:

• Lower entry points (e.g. $50K–$100K minimum).

• Exposure to high-quality assets you might not afford alone.

• Hands-off: the fund manager handles acquisition, leasing, and management.

  
  

Cons:

• Limited control or influence over decisions.

• Funds are usually illiquid—your money may be tied up for years.

  
  

Best for: Investors seeking stable returns without active involvement, or those diversifying beyond residential property.

3. Property Syndicates – Targeted Group Investment

Syndicates are like unlisted funds but are often smaller, project-specific, and more tightly held. A group of investors comes together to acquire one or a small group of commercial assets.

Pros:

• Lower capital requirement per investor.

• Access to unique or off-market opportunities.

• May offer higher returns if the project is well-managed.

  
  

Cons:

• Still passive, with limited investor control.

• Liquidity can be a challenge—exit strategies vary by syndicate.

  
  

Best for: Investors wanting targeted exposure to a specific property or market with a medium-term horizon.

4. Listed Property Funds (A-REITs) – Liquidity and Simplicity

Australian Real Estate Investment Trusts (A-REITs) are listed on the ASX and operate like shares. You can buy and sell units on the stock market, giving you exposure to property returns with share-like liquidity.

Pros:

• Low entry cost and easy to buy/sell.

• Professionally managed and diversified.

• Ideal for portfolios needing liquidity.

Cons:

• Prone to share market volatility.

• Returns may be more moderate compared to direct or unlisted options.

Best for: Investors seeking liquidity and diversification with a passive, low-hassle structure.

Choosing the Right Path

Investment Type	Control	Capital Required	Liquidity	Management Load
Direct Ownership	High	Very High	Low	High
Unlisted Funds	Low/Passive	Moderate	Moderate	Low
Syndicates	Moderate	Varies	Low/Medium	Moderate
A‑REITs	Low	Low	High	Very Low

Each strategy suits different investor goals, risk appetites, and time horizons—from full control and active management to passive diversification with expert oversight.

Why CapStack is the Optimal Funding Partner for Property Investors & Developers

At CapStack, we don’t just arrange loans—we design funding solutions that are as distinctive as your assets:

• Tailored capital structures – Whether you're chasing boutique hotels, industrial assets, retail reinventions, or syndicate-scale acquisitions, we create bespoke finance solutions that match your project and strategy.

• Speed & agility – Our streamlined processes and lender relationships mean faster approvals—perfect for off-market acquisitions or funding windows.

• Aligned incentives – We act as partners in your growth, not just vendors—our fee structures prioritize your project success and ROI.

• Deep commercial insight – We’ve funded and financed across commercial segments and syndicate plays, bridging direct, fund, and hybrid models with confidence.

• Seamless integration – CapStack can collaborate with your fund managers, syndicate leads, or internal team to augment capital structures, manage gearing, and facilitate refinancing.

Why work with us?

• Deep experience across asset types and ownership models

• Strong lender network—from major banks to private debt funds

• Speed and flexibility, especially with off-market or time-sensitive deals

• We're entrepreneurs too—we speak your language and understand your vision

  
  

Ready to Talk?

If you’re looking to refinance, acquire, develop, or simply review your funding structure, we’d love to help. Our reviews are cost-free and obligation-free—but often uncover real savings or growth opportunities.

Let’s connect and make your next commercial investment work even harder.