038: Steve Palise of Palise Property | Nationwide (Commercial)

“Commercial outperforms — you get three times the cash flow and the same capital growth.” – Steve PaliseCommercial property is gaining serious momentum—but most investors still don’t understand how it really works. In this episode, Steve Palise breaks down why commercial assets are outperforming on paper, and where investors go wrong chasing yield without understanding risk.Steve shares his journey from engineer to building a portfolio across 1,000+ residential and hundreds of commercial deals, along with how he evaluates assets, tenants, and locations beyond surface-level metrics.We dive into key concepts like vacancy risk, tenant quality, yield compression, and why due diligence in commercial is significantly more complex than residential—covering everything from lease reviews to tenant financials.If you’re considering commercials—or want to avoid costly mistakes—this episode gives you a clear framework to think smarter about risk, return, and long-term strategy.Episode Highlights01:12 Meet Steve Palise: The Commercial Specialist03:17 Commercial vs Residential: Key Differences08:01 How to Analyse Commercial Deals Properly10:25 What Happens When Commercial Deals Fail12:46 Vacancy Risk Most Investors Ignore14:29 Price Points, Tenants, and Risk Levels17:32 Commercial Value-Add Strategies Explained20:18 The Overconfidence Trap in Commercial21:57 Real Example: Shopping Centre Returns25:57 Why Industrial Showrooms Are in Demand27:11 Inside a 40-Hour Due Diligence Process29:13 Hidden Costs: Insurance and Outgoings33:22 Why Demand Matters More Than Tenants34:44 Supply, Growth, and Risk Explained36:44 Supply Constraints and Tenant Demand38:51 Budget Impact and Investor TrendsAbout the GuestSteve Palise is the founder of Palise Property and a commercial-focused buyer’s agent with experience across more than 2,000 property transactions, including 1,200+ residential and 800+ commercial deals.Originally trained as a structural and mechanical design engineer, Steve transitioned into property investing after building his own residential portfolio, starting with a purchase in Western Sydney in 2012. He later helped scale a buyer’s agency to a 25–30 person team before launching his own business, where he became known for his data-driven approach and deep expertise in commercial property analysis.Steve is widely recognised for educating investors on commercial property, having authored one of the first widely distributed books on the topic and giving away over 50,000 copies. His investment philosophy focuses on cash flow, tenant quality, and rigorous due diligence—often involving 20–40 hours of analysis per deal.Connect with SteveLinkedIn - Steve PaliseLinkedIn - Palise PropertyInstagram - Palise PropertyYouTube - Steve Palise | Palise PropertyWebsite - Palise Property Buyers AgencyFacebook Page - Palise PropertyWork with Chris (Alcove)Business Webpage Link - https://alcove.com.auEmail - [email protected] Alcove at: (1300 252683)Socials:LinkedIn (Alcove) - https://www.linkedin.com/company/alcovembLinkedIn (Chris) - https://www.linkedin.com/in/christopherbates/Instagram (Chris) - https://www.instagram.com/chrisbates_alcove/🗓️Book a chat with us!🗓️Follow us on our socials!YouTubeLinkedInInstagramTikTokEnjoyed the podcast? Don't miss out on what's yet to come! Hit that subscription button, spread the word, and join us for more insightful discussions in real estate. Your journey starts now!Subscribe on YouTube: https://www.youtube.com/@street-secretsSubscribe on Apple Podcasts: https://podcasts.apple.com/us/podcast/street-secrets/id1837331268Subscribe on Spotify: https://open.spotify.com/show/7sBYmpcuxCYwceQiHdBnaq?si=2Gdl60HRRWCBoUlcBHB0nAThe information provided in this podcast is for general informational purposes only and should not be relied upon as financial, investment, or credit advice. It does not take into account your personal objectives, financial situation, or needs. You should consider the appropriateness of the information to your circumstances and seek advice from a licensed financial adviser, mortgage broker, or other qualified professional before making any decision. Canopy Private Pty Ltd holds Australian Credit Licence 558709.