Many people hold a deep-seated assumption about commercial property: that it is a game for large institutions and serious capital. That getting in requires tens of millions, at minimum.
A decade ago, that assumption may have had some basis.
Today, the entry point for Australian commercial property is considerably lower than most people realise. Between AUD 500,000 and AUD 3 million, it is already possible to acquire commercial assets with genuine leases, stable cash flow, and in some cases, national brand tenants.
This article is designed to give you a clear picture of what that price range actually buys.
A Case Study to Start With
At a commercial property investment auction in the first quarter of 2026, the following transactions were recorded:
Duncan’s Liquor, Wollert (northern Melbourne) — sold for AUD 631,000 at a 5.53% yield.
AUD 631,000. A commercial tenancy with a long-term lease generating approximately AUD 35,000 in net annual rent.
At the same auction: IGA, Wollert — sold for AUD 1.29 million at a 5.94% yield, generating approximately AUD 77,000 in net annual rent.
These two transactions illustrate a single point: not every commercial property deal requires millions. For around AUD 1 million, it is possible to acquire a community retail asset supported by a nationally recognised supermarket operator.
From $1M to $3M: Your Options
Option One: Community Retail Tenancy (AUD 500K – AUD 2M)
This is the most common entry point in this price range. Standalone tenancies, typically located within neighbourhood shopping strips, leased to hairdressers, cafés, pharmacies, or small franchise operators.
The advantage is a low entry cost, with lease terms generally running three to five years, sometimes with renewal options attached.
The considerations: tenant quality varies considerably. If the tenancy becomes vacant, the onus falls on the owner to secure a replacement — with no income in the interim. For first-time commercial property buyers, the apparent simplicity of these assets conceals a number of details that warrant professional scrutiny.
Best suited to: investors with limited budgets who wish to enter the market at a small scale, and who have some appetite for property management involvement.
Option Two: Net Lease Fast Food or Convenience Retail (AUD 1.5M – AUD 2.8M)
This is currently one of the most sought-after entry-level asset types in the market.
A net lease structure means the tenant bears the majority of operating costs — including insurance, council rates, and maintenance — leaving the landlord to essentially collect rent. Combined with lease terms of 10 to 15 years and fixed annual rent increases of 3% to 4%, the ownership experience of these assets approaches genuine passivity.
Transaction records from CBRE and Burgess Rawson this year confirm that assets in this category are transacting at accessible price points:
- El Jannah (Sydney-style fast food), Bayswater North, Melbourne — AUD 3.31 million at a 4.82% yield
- 7-Eleven, Richmond, Melbourne — AUD 3.62 million at a 4.96% yield
- Hungry Jack’s, Kempsey, NSW — AUD 6.50 million at a 4.92% yield
Below the AUD 3 million mark, comparable assets exist — fast food tenancies in regional cities, service station convenience stores, and independent pharmacies — typically yielding between 5% and 6.5%.
Best suited to: investors seeking genuinely passive income with minimal management obligations; also well-suited to Self-Managed Superannuation Fund (SMSF) structures.
Option Three: Early Learning Centres (AUD 1.8M – AUD 3M)
A sector that has attracted significant institutional capital in recent years, though smaller independent early learning centres in regional cities can still be acquired from around AUD 1 million.
Goodstart Early Learning in Pooraka, Adelaide transacted in the first quarter of this year at AUD 2.4 million, yielding 4.24%.
The appeal of early learning assets lies in their lease length — typically 15 to 20 years — combined with the strong credit profile of national operators such as Goodstart, G8 Education, and Guardian, and the structural demand underpinned by Federal Government childcare subsidy policy.
The risk to be aware of: should the operator close a particular centre, the highly specialised nature of the building makes re-leasing materially more difficult. Site selection requires careful verification — the demographic profile of the catchment, local birth rates, and the number of competing centres within a five-kilometre radius.
Best suited to: investors committed to long-term holds who can accept lower liquidity; buyers with family trust or SMSF structures seeking to maximise tax efficiency.
Option Four: Medical Consulting or Allied Health Premises (AUD 1.5M – AUD 3M)
In suburban locations across Sydney, Brisbane, and Adelaide, AUD 1.5 million to AUD 3 million can acquire allied health properties tenanted by general practitioners, physiotherapists, and psychology practices.
The underlying investment logic has been covered in detail in earlier articles in this series: demand for medical services is non-discretionary regardless of economic conditions. Federal Government funding commitments to general practice — including an AUD 7.9 billion investment to advance bulk billing — directly reinforce the payment capacity of tenants in this sector.
Recent transactions include Abano Healthcare in Leopold, Geelong at AUD 1.654 million yielding 5.22%, and Terry White Chemmart in Devonport, Tasmania at AUD 2.5 million yielding 5.76%.
Best suited to: medical practitioners considering owner-occupation (with specific tax advantages); investors seeking counter-cyclical asset exposure.
Option Five: Small Industrial Units or Warehouse Strata (AUD 1.5M – AUD 3M)
The industrial sector represents the strongest fundamental performance of any commercial property category in Australia in 2026. However, industrial assets in major metropolitan markets have seen significant price appreciation.
The opportunity: smaller industrial units in regional and mid-sized cities remain accessible between AUD 1.5 million and AUD 3 million. Modestly scaled warehouse assets in Sydney’s western corridor and Melbourne’s western suburbs also appear within this range from time to time, though they require patience and access to the right channels.
PropBoss data indicates the average industrial yield in 2025 was approximately 6.1% — among the highest across all commercial property sectors.
Best suited to: active investors willing to compete in a tighter market and invest time in finding the right opportunity.
Two Common Misconceptions in This Price Range
Misconception one: a higher yield is always better.
Encountering a 7% yield and thinking “that looks attractive” is a natural first response — but elevated yields frequently signal elevated risk: weaker tenant covenants, leases approaching expiry, secondary locations, or deferred maintenance requirements.
The right question is not “how high is the yield?” but “what risk underpins this yield, and am I in a position to absorb it?”
Misconception two: smaller assets don’t require thorough due diligence.
The due diligence required on a AUD 1 million asset is no less rigorous than on a AUD 10 million one. Lease terms, the tenant’s actual trading performance, and the building’s latent capital expenditure requirements are all equally present in smaller assets — and are equally likely to be overlooked by buyers who assume the lower price point reduces the stakes.
Our third article in this series provides a systematic overview of five categories of hidden risk in commercial property due diligence, applicable to assets of any size.
The Cornerstone Assets Perspective
Over recent years, an increasing proportion of the clients who come to us seeking guidance on AUD 1 million to AUD 3 million commercial property investments share a common profile:
They have built something solid professionally. They own their home. But leaving capital in the bank feels uncomfortable, the sharemarket feels too volatile, and what they want is something tangible — an asset they can see, with rent arriving in their account each month.
They are not looking to transform their financial position. They want the capital they have already accumulated to continue working quietly on their behalf.
Commercial property can deliver that.
But only if you acquire the right asset, hold it within the right structure, and complete thorough due diligence before signing.
Those three things are precisely what Cornerstone Assets exists to provide.
We represent buyers exclusively — never vendors, and never in receipt of vendor commissions. If you are considering a commercial property investment in the AUD 1 million to AUD 3 million range, we welcome you to contact us for a complimentary initial consultation.
