What actually changes when you cross over
The tenants are businesses, and the lease is a negotiated commercial contract. In NSW a lease should set out the term, how rent is calculated, who pays for fit-out, who repairs what, any option to renew, the permitted use, make good and the outgoings the tenant pays. Rent reviews are usually annual and use a fixed percentage, CPI, a market review or another agreed formula. Security can be a cash bond, a bank guarantee or a third party guarantee. Most of these are negotiated, so you spend more time on terms and less on routine.
Outgoings are the part residential managers find newest. Owners pass building costs like council rates, water, land tax, cleaning, security and insurance through to tenants, and you run the budget and the year-end reconciliation. For NSW retail leases on a 1 July financial year, the lessor must give an outgoings estimate by 31 May and an audited statement of actual outgoings by 30 September. Over or under-payments are then settled by 31 October.
Retail leases have their own rules
Each state has a retail leases Act that overrides the lease. In NSW the Retail Leases Act 1994 covers premises under 1,000 square metres used for a listed retail business, on a lease of six months to 25 years, and can catch other shops in a shopping centre. A signed disclosure statement must be given to the tenant at least seven days before a new lease or renewal. Retail cash bonds go to NSW Fair Trading within 20 business days, and leases over three years must be registered. Key money is banned.
In Victoria, a retail tenant pays only the outgoings listed in the lease and only after receiving a written estimate. The landlord cannot make a retail tenant pay land tax or capital costs. Getting these steps wrong costs your owner money, which is why employers test this knowledge at interview.
Clients, employers and how the work feels
Residential landlords are often individual investors. Commercial owners include private investors, syndicates, funds and listed groups, and they judge you on income, vacancy and reporting. Expect monthly management reports, budgets and capital works planning. These owners want clear numbers and few surprises, so the reporting side of the job carries more weight than it does in a residential portfolio.
Employers are commercial divisions of residential agencies, specialist commercial agencies and the larger national firms. In NSW, people doing commercial work for an entity whose property holdings are worth $40 million or more, or total 20,000 square metres or more of floor area, are exempt from the licensing Act. That is why many in-house roles at funds and owners do not ask for a licence.
How to get the first commercial role
Start inside your own agency if it has a commercial desk. Offer to help with outgoings reconciliations, arrears or lease renewals on small shops and offices. A mixed portfolio of shops and light industrial units is a common first step. Take a short course to show intent. The REIQ runs a two-day commercial essentials program that covers budgeting, outgoings reconciliations, management reports, retail leasing and lease renewals, and it is pitched at residential managers branching out.
If your agency has no commercial work, apply for commercial property administrator or assistant property manager roles. Your trust accounting, arrears and maintenance skills transfer directly. Learn the retail leases Act for your state before the interview, and be ready to walk through how an outgoings reconciliation works.
Pay
AUD a year, before tax. Market figures are modelled from ABS Employee Earnings and Hours (May 2025), indexed to 2026, with state figures estimated. Award minimums are from the Real Estate Industry Award 2020 effective 1 July 2026. Portfolio size, asset type and employer (agency or fund) move pay most. Refer to the Commercial Property Management salary guide for figures from live adverts.
What you need
- Real estate licence (agency roles)In NSW the real estate agent licence covers selling, leasing and managing property for clients, including commercial. NSW has class 1 and class 2 licences, and class 2 needs at least 12 months as a registered assistant agent first.
- Licence exemption (some in-house roles)In NSW, commercial work for an affiliate, or for an owner with property worth $40 million or more or 20,000 square metres or more, does not need a real estate licence.
- Retail leases lawKnow your state's retail leases Act, including disclosure statements, outgoings estimates and bond rules. Employers expect this from day one.
- Financial skillsBudgets, outgoings reconciliations and monthly owner reports are core tasks. Comfort with spreadsheets and accounts matters more than in residential.
- Commercial trainingShort commercial courses, such as the REIQ's Commercial Property Management Essentials Program, are optional. They still strengthen an application from a residential manager.
State by state
| New South Wales | Retail Leases Act 1994 covers retail shops under 1,000 square metres on leases of six months to 25 years. The tenant must get the disclosure statement at least seven days before a new lease or renewal, and cash bonds go to NSW Fair Trading within 20 business days. |
|---|---|
| Victoria | Under the Retail Leases Act 2003, the disclosure statement is due at least 14 days before the lease is entered into. A written outgoings estimate is due before the lease and at least a month before each accounting period, and retail tenants cannot be charged land tax. |
| Queensland | Under the Retail Shop Leases Act 1994, the lessor disclosure statement (Form 7) must reach the tenant at least 7 days before the tenant enters the lease. On renewal under an option, a current statement is due within 7 days of the renewal notice. |
How to get there
- Years 1-3Residential property managerBuild trust accounting, arrears, maintenance and landlord reporting skills under your licence.
- Year 2-3Learn commercial basicsComplete a commercial course and study your state's retail leases Act.
- Year 3-4Commercial assistant or mixed portfolioTake on small shops, offices or industrial units, or move into an assistant role on a commercial team.
- Year 4-6Commercial property managerRun your own portfolio with outgoings budgets, reconciliations, rent reviews and lease renewals.
- Year 6+Senior or asset managementMove to larger retail or office assets, a fund or owner, or into asset management.
Open now on PropertyRoles.com.au
Questions people ask
Do I need a new licence to manage commercial property?
Usually not. In NSW the same real estate agent licence covers selling, leasing and managing property for clients, whether residential or commercial. Some in-house roles at large owners are exempt from licensing altogether.
What is the hardest part of the switch?
Most residential managers find outgoings the steepest learning curve. You prepare annual estimates, recover costs from tenants and reconcile actual spending each year against strict retail lease deadlines.
Are retail and commercial leases the same thing?
No. A retail lease is covered by your state's retail leases Act, which adds tenant protections such as disclosure statements and limits on outgoings. Office and industrial leases outside that Act depend mostly on what the parties negotiate.
Can I be paid commission only in commercial leasing?
Under clause 16.7 of the Real Estate Industry Award, commercial, industrial or retail leasing staff at Level 2 or higher can agree in writing to commission-only pay. They must have earned at least 125% of their classification rate over 12 consecutive months in the past three years. Casuals, part-timers and juniors are excluded.
Will I earn more in commercial?
Modelled ABS figures put commercial and residential property managers on about the same median, roughly $80,700 a year nationally. Pay rises with portfolio size and asset quality, and larger fund or institutional roles usually pay more than small agencies.
Sources
- NSW Fair Trading: real estate agent licence
- NSW Fair Trading: commercial property work exemptions
- NSW Small Business Commission: Retail Tenancy Guide
- Victorian Small Business Commission: outgoings under a lease
- Victorian Small Business Commission: what are retail premises
- Queensland Small Business Commissioner: retail shop lease forms
- Queensland legislation: Retail Shop Leases Act 1994
- REIQ: commercial property management careers
- REIQ: Commercial Property Management Essentials Program
