Keep hearing commercial gives better returns than a flat, but also that it comes with tenant risk and longer vacancy stretches. For someone with one residential property already, wondering what the actual trade-off feels like on the ground, not the pitch you get from a broker.
Ground reality: commercial rent yield tends to look better on paper than residential, but the catch is vacancy — a residential flat rarely sits empty for very long, a commercial unit in a building with weak occupancy can sit that way for a while. So the return is real only if the building itself is well-occupied and well-managed. Commercial tenants also negotiate harder and lock-in periods matter — a longer lock-in with a registered lease is worth more to you than headline rent. I'd rather buy in a building where I can see other floors are actually let out than chase whatever yield gets quoted.
Agree on vacancy risk, that's the part nobody warns you about before you buy.
Makes sense, will actually walk the building and check occupancy before deciding.
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