More Australians are looking beyond houses and apartments and investing in commercial property. Some want stronger rental returns. Others want to stop paying rent and own the space their business works from.
At Williams Landing, Cedar Woods has delivered six standalone office buildings, working with hundreds of investors and business owners along the way.
This guide shares what we’ve learned. It covers how commercial property works, whether it’s a good investment, how to choose the best area to buy, and what to check before you commit.
Commercial property is any premises used for business rather than housing. The main types are:
For first-time commercial investors, strata offices are one of the most accessible options. In a strata building, you buy an individual suite rather than the whole building, so the entry price is lower, and the property is easier to manage.
For the right investor, commercial property can be a strong addition to a portfolio. Like any investment, it has benefits and risks.
Higher rental returns. Commercial property generally offers higher rental yields than residential property. That makes it attractive to investors who want regular income.
Longer leases. Commercial leases often run for three to ten years, much longer than a typical residential lease. A long lease with a good tenant gives you more certainty about your income.
Tenants often cover outgoings. Under many commercial leases, tenants pay some or all the property’s outgoings, such as council rates, insurance and maintenance. That can significantly boost your net return.
Tenants invest in the space. Businesses often fit out their space and take care of it, because it’s where they serve customers and run their operations.
Flexibility for business owners. If you run a business, you can buy a commercial property and occupy it yourself. Instead of paying rent to a landlord, you’re building equity in your own asset. Some business owners also buy through a self-managed super fund (SMSF), so check with your adviser whether that suits you.
Longer vacancy periods. When a commercial tenant leaves, finding a new one can take longer than with residential property.
Larger deposits. Lenders usually ask for a bigger deposit for commercial property than for a home loan, and loan terms can be stricter.
Sensitivity to the economy. Demand for business space rises and falls with the economy, so location and tenant quality matter even more.
More complex leases. Commercial leases include more detailed terms, so legal and financial advice is essential.
Built in rental growth. Commercial leases will often include scheduled annual rent increases, such as CPI-linked or fixed percentage increases. This can provide investors with growing rental income over the lease term and may also support the property's long-term capital.
The bottom line: commercial property can be a very good investment when you buy in the right location, choose a quality building and understand the lease terms.
| Commercial | Residential | |
| Rental yields | Generally higher | Generally lower |
| Lease length | Often 3 to 10 years | Often 6 to 10 months |
| Outgoings | Often paid by the tenant | Usually paid by the owner |
| Vacancy risk | Can be longer between tenants | Usually shorter |
| Deposit | Usually larger | Usually smaller |
| Owner-occupier option | Run your business from it | Live in it |
Location is the biggest factor in any investment, and it matters even more with commercial property. When you’re looking for the best area to buy an investment property, look for:
1. Strong population growth. More residents mean more customers, more workers and more demand for local services.
2. Transport links. Businesses want staff and clients to get in and out easily by train and car.
3. Employment and business activity. Areas planned as employment centres attract a steady stream of businesses looking for space.
4. Local amenity. Cafes, shops, gyms and services make an area more attractive to the people who work there.
5. Planning and infrastructure investment. Government and developer investment signals long-term confidence in an area.
6. Quality, modern buildings. Newer buildings with good amenities attract better tenants and need less maintenance.
Williams Landing, in Melbourne’s west, ticks each of these boxes.
A growing region. Williams Landing is located within the City of Wyndham, one of Australia's fastest-growing regions. With Wyndham's population projected to reach approximately 472,000 by 2036, the region's continued growth presents opportunities for local businesses, healthcare providers and professional services.
Excellent transport links. Williams Landing has its own train station and direct access to the Princes Freeway. That puts the Melbourne CBD about 20 km away, with easy access to Geelong, the airport and the wider west.
A recognised employment centre. “Williams Landing is marked as a major activity and employment centre,” says James Bovell, Victorian State Manager at Cedar Woods, with a growing business community now calling the precinct home.
Everyday amenity. Workers and visitors have the Williams Landing Town Centre, cafes, dining, a gym and services within walking distance. See what’s nearby on our amenities page.
A proven track record. Cedar Woods has delivered a series of successful commercial buildings in Williams Landing, including Boston Commons and 101 Overton Road. Each building has added to the strength of the precinct. View the full list of completed commercial projects.
According to Bovell, “many businesses are opting for suburban locations over the CBD.” Lower costs, shorter commutes and modern buildings are drawing businesses to centres like Williams Landing.
Hudson Hub is Cedar Woods’ sixth standalone office building in Williams Landing. Designed by Hames Sharley, it offers strata office and retail shops built for modern businesses.
Features include:
Suites come in a range of sizes, which suits investors looking for their first commercial property and owner-occupiers who want a space their business can grow into. “With a significant number of purchasers being local owner-occupiers, we understand their need for spaces”, says Bovell.
Browse current offices for sale in Williams Landing.
Investors buy commercial property to lease it out for rental income and long-term capital growth. A well-located strata office in a strong precinct can attract quality tenants and deliver a steady return.
Owner-occupiers buy the space their business operates from. Instead of paying rent, they repay a loan on an asset they own. Many business owners also like having control over their fit-out and the security of not facing lease renewals.
Some buyers do both. They occupy part of their space now and lease it out later as their business grows or moves.
What is the benefit of investing in commercial property?
Investing in commercial property can offer higher rental yields, longer leases and tenants who often pay outgoings. Business owners can also buy and occupy their own space instead of paying rent.
Is commercial property a good investment?
Commercial property can be a good investment when it’s in a strong location, the building is high quality, and the lease terms suit you. Like any investment, it carries risks, including vacancy periods and larger deposit requirements, so get independent advice first.
What is the best area to buy an investment property?
The best area to buy an investment property has strong population growth, good transport links, a healthy mix of businesses and ongoing infrastructure investment. In Melbourne’s west, Williams Landing offers all of these, with its own train station, freeway access and an established commercial precinct.
Is a strata office a good first commercial investment?
A strata office can be a good starting point, because you buy an individual suite rather than a whole building. That means a lower entry point and shared costs for common areas.
Can I buy commercial property for my own business?
Yes. Many business owners buy commercial property to operate from. At Hudson Hub in Williams Landing, many purchasers are local owner-occupiers.
Why invest in Williams Landing?
Williams Landing is a major activity and employment centre in one of Australia’s fastest-growing regions. It offers train and freeway access, a town centre with everyday amenity, fostering a growing business community.
If you’re considering investing in commercial property, Williams Landing offers a proven location backed by more than twenty years of Cedar Woods investment. Contact our team to learn about available suites at Hudson Hub, or visit us at 100 Overton Road, Williams Landing.
Disclaimer: The information used in this document is indicative only and may not represent the final detail or accurately represent personal circumstances of each person. Cedar Woods gives no warranty concerning the accuracy of the material or information displayed in this blog. Prospective buyers should make their own enquiries and rely on their own investigations and independent advice. All information in this blog is subject to Terms of Use accessible at www.cedarwoods.com.au/Terms-of-Use.