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From 2% to 6%+: The yield gap driving investors to commercial property
In The Smart Property Investment Show podcast, host Phil Tarrant and Westbridge Funds Management chairman Damian Collins reveal why more investors are making the switch to commercial in 2026 – and how to do it right.
With residential yields tightening to around 2–2.5 per cent, investors are turning to commercial assets delivering over 6 per cent returns, often with tenants covering outgoings, making them a powerful income play.
But the pair warn that higher returns come with higher stakes, and without the right due diligence on tenants, leases, and location, investors risk costly vacancies and poor outcomes.
For those not ready to dive in directly, funds and syndications offer a lower-risk entry point with access to premium assets and professional management.
With industrial properties leading the charge and retail holding strong, the opportunity is clear, but only for investors who approach it with the right strategy, discipline, and understanding.
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