Commercial and industrial real estate is a type of property investment that deals with retail, offices and industrial land and properties.

It’s set apart from the housing industry by a different set of codes and legal guidelines.

Of three main types of commercial property, offices offer the lowest yield.

One of the reasons office property is a low return is that it is seen as a safer investment than retail or industrial.

Office tenants tend to stay in their premises longer generally than owners of a retail business, therefore offering greater security to investors.

A commercial property estate agent can help you choose the best areas for investment.

If you have the right location, retail property can be a good investment. The key is the anchor tenant: the big supermarket or chain store that attracts people to that location, whether it’s a shopping precinct or a mall. The closer your shop is to the supermarket, the more pedestrian traffic you’ll get past the door.

Industrial real estate investment returns are highest, but that’s because a factory is usually built for a specific purpose and it’s not easy to get another tenant or buyer if the original leaves.

If you’re looking to rent a commercial or industrial property, you should familiarise yourself with the area you want to rent in and then consider all the factors – access, transport in and out, storage – that can affect your business. A property agent, with their experience, will be able to stop you making potentially disastrous decisions.