Commercial strata refers to the ownership and management of commercial properties where individual units are sold to different owners, who then jointly own the common areas of the building. This model allows developers to raise capital quickly and provides individuals with opportunities to invest in commercial real estate, such as offices, warehouses, and retail spaces, either by buying individual units or through fractional ownership platforms like Strata. Owners are responsible for paying strata fees to cover common area maintenance, and this model is supported by specialized insurance and management services. Key aspects of commercial strata Ownership and management: Strata properties are divided into individually owned units (e.g., an office floor) and common areas (e.g., lobby, elevators) that are jointly owned by all unit owners. Investment model: This model allows developers to sell individual units to raise capital and provides individuals with access to the commercial real estate market. Fractional ownership platforms further simplify this by allowing investors to buy a portion of a property. Developer's perspective: Developers can use strata sales to finance new projects and reduce the costs and complexities of managing a property long-term, even in high-quality developments. Owner's responsibilities: Strata fees: Owners pay regular fees to a strata corporation to fund the maintenance, management, and repair of common areas. These fees can change based on the needs of the property. Commercial Strata Insurance: This is a crucial component that covers common property and includes building, public liability, and contents insurance, notes Knightsbridge Insurance Group. Market dynamics: While the model is growing, in some markets, single-owned commercial properties are still seen to outperform strata properties in terms of rental yields. Management services: Specialized commercial strata management systems exist to help optimize the use of commercial real estate and manage the shared responsibilities between owners.