Commercial Real Estate: Is It Worth Buying Storage Units and Warehouses as an Investment?

Why More Investors Are Turning to Industrial Property

While residential property dominates most conversations, many investors are now shifting their focus to commercial real estate. In particular, storage units and warehouses are attracting attention.

Thanks to the rise in online shopping, logistics services, and trade-based businesses, the demand for industrial space is growing fast in areas like Western Sydney, Brisbane, and the Gold Coast.

Storage, Rockwater Brookvale | Investment Commercial Property | Western Sydney | Secure with $5k $131 x 19 weeks

What Makes Warehouses and Storage Units Appealing?

There are some clear benefits that make these properties attractive to both experienced and first-time investors.

Stronger Rental Yields

Industrial properties typically offer higher returns. While residential properties often deliver yields of around 2 to 4 percent, well-positioned warehouses can return between 5 and 7 percent or more.

Fewer Ongoing Costs

Unlike residential homes, industrial properties usually need less maintenance. They are less prone to wear and tear and most leases are structured so the tenant pays for costs like insurance, council rates, and repairs.

Stable Long-Term Leases

Tenants in commercial properties tend to sign longer lease agreements. These tenants, often businesses or trades, value consistency and are more likely to stay put.

Growing Demand

From e-commerce businesses to builders and storage providers, more and more people are looking for warehouse and storage space. As available land becomes limited, the value of these properties is likely to keep rising.

Rockwater Brookvale | Investment Commercial Property | Western Sydney | Secure with $20k $1,935 x 19 weeks

Where Should You Buy?

Location is one of the most important factors when buying commercial property. Some top growth areas include:

Western Sydney

With the new airport and billions in infrastructure spending, suburbs like Northmead, Wetherill Park, and Prestons are becoming industrial hotspots.

South-East Queensland

Places like Yatala, Stapylton, and Arundel are known for their thriving industrial zones. These areas are close to major roads and transport routes.

Inner-Metro Fringe

Suburbs just outside city centres are also attractive. They offer lower prices than the CBD but still provide excellent access to major transport corridors.

Look for properties close to motorways, ports, or trade hubs. These details matter to tenants.

Solus Industrial Byron Bay | Investment Commercial Property | Byron Bay, NSW | Secure with $20k $13,034 x 24 weeks

Things to Be Aware Of

Just like any investment, there are risks involved.

• Vacancy periods can be longer compared to residential
• Lending requirements may include higher deposits and stricter terms
• Economic shifts can impact demand for industrial space, especially in certain sectors

Proper research, expert advice, and a clear investment plan can help you manage these risks.

Storage, Stream Northmead | Investment Commercial Property | Western Sydney | Secure with $5k and $97 x 43 weeks

Buying Warehouses with Coposit

If you are considering buying a warehouse off the plan, Coposit can make the process easier and more affordable.

Here is how Coposit works for commercial buyers:

• Start with a $20,000 deposit
• Pay the rest in small weekly payments during construction
• No need for a large lump sum or a loan
• No interest charged while you complete your payments
• Secure access to properties that may otherwise be out of reach

Projects like Stream Northmead in Sydney are already using Coposit to help investors get in early while demand is still rising.

Storage, Stream Northmead | Investment Commercial Property | Western Sydney | Secure with $5k and $97 x 43 weeks

Industrial Property and First-Time Investors

If you are thinking beyond residential property, warehouses and storage units offer a powerful entry point into the commercial space.

With stable tenants, strong yields, and growing demand, the industrial sector is becoming a key part of Australia’s property investment market. Off the plan purchases through Coposit make this opportunity even more accessible.

Explore industrial property listings and secure your commercial future today.