Why Commercial Property Can Outperform Shares in Australia

Back by popular demand.

Our managing director, Cal Doggett, returned to The Follio Property Podcast for a second appearance — and this time, the spotlight was firmly on commercial property.

The conversation cuts through the noise to tackle one big question: why commercial property deserves a place in your investment portfolio. For 35 minutes, Cal dives into the differences between shares, residential and commercial, and how investors can unlock opportunities that others often miss.

Watch the full episode on YouTube

Or tune in on Spotify or Apple Podcasts.

Cash flow and capital growth

One of the myths Cal unpacks is that commercial property is all about cash flow. Yes, the yields are attractive — often significantly higher than residential — but there’s more to the story.

You can buy something vacant and you can lease it up and generate enormous capital growth. Some of the greatest returns we’ve done have been in the shortest amount of time — just because from vacant to leased creates a massive movement in value.

That combination of income and growth is what can set commercial apart from other asset classes.

Tenants: your biggest investors

Another standout moment in the episode is Cal’s perspective on tenants. It’s not just about the four walls and the land underneath. Who’s paying the rent is everything.

We have investors, but the biggest investor is the tenant. Their rent covers the interest to the bank and puts money in your pocket. It covers the outgoings, it covers the water rates, the land tax, the management fees, the council rates, the gardening, the landscaping, the air conditioning that goes bust — their rent covers all of those expenses.

It’s a reminder that commercial investing is as much about understanding business as it is about property.

When commercial fits into a portfolio

For many investors, residential property is the first step. But when does it make sense to move into commercial?

About 75% of our investors are using a self-managed super fund. So again, like there’s a correlation there between stage in life and having built up enough equity to invest. Interestingly though, the young professionals are in the best spot to take advantage of commercial… look at your network — you know a dentist, you know a doctor, you know your chiropractor, you know people that run businesses — and guess what they need? They need a place to run their business.

It’s a perspective that broadens the conversation: commercial isn’t just for institutional investors. With the right strategy, it can provide stable income, diversification and long-term growth for everyday Australians.

Tune in now

If you’ve ever wondered how to spot opportunity in the commercial property investment landscape, this is 35 minutes of expertise you won’t want to miss.

Watch the episode on YouTube

Listen on Spotify

Or catch it on Apple Podcasts