Australian residential mortgage brokers achieved record 76% market share in December 2024.

Yet only 17% plan to adopt digital solutions, according to Connective.

This creates a fascinating paradox in the broader property financing ecosystem. While residential brokers dominate their market through relationship-driven processes, the commercial real estate sector operates under entirely different dynamics—requiring sophisticated deal structuring, global capital access, and complex regulatory navigation that few traditional aggregators even attempt to serve.

The Success Trap

Residential brokers spend 60% of their time on administrative coordination rather than strategic advisory work, according to productivity research. They've built their identity around being "the relationship person" while drowning in paperwork.

This model works reasonably well in the standardised residential market, where loan products are relatively uniform and regulatory requirements predictable.

But commercial real estate financing operates in a different universe entirely. Property developers need access to construction loans, mezzanine financing, international capital sources, and complex deal structures that require genuine expertise rather than administrative coordination.

The disconnect becomes stark when 90% of global survey participants state digital technology is essential for positive customer experience, yet most aggregators lack the specialised infrastructure to serve commercial property markets effectively.

The Commercial Opportunity

The commercial real estate financing market represents a fundamentally different proposition. The value of Commercial Real Estate in Australia is AU$2.58tn with a (CAGR 2025-2029) of 2.38%.

Unlike residential lending, commercial property financing involves complex feasibility studies, multiple capital sources, international regulatory compliance, and sophisticated risk assessment. Most traditional aggregators lack the infrastructure to support these requirements, creating a significant market gap.

The complexity extends beyond simple loan origination. Some large commercial deals can require due diligence across multiple jurisdictions, coordination with international financiers, and ongoing asset management throughout the loan lifecycle.

This creates opportunities for specialised platforms that can handle the operational complexity while enabling advisors to focus on strategic deal structuring and client relationships.

The Industry Split

The aggregator landscape reveals an interesting divide. While most focus exclusively on residential lending, a few forward-thinking operators recognise the commercial opportunity and have begun developing specialised capabilities.

The challenge is significant: commercial real estate requires different regulatory knowledge, international compliance expertise, and technology infrastructure capable of managing complex, multi-jurisdictional transactions.

Traditional aggregators built for residential processing lack the specialised systems needed for commercial property financing, creating receptivity to purpose-built platforms that can fill this capability gap.

This market divide creates distinct opportunities. Residential-focused aggregators continue serving their established markets, while commercial specialists develop the expertise and technology infrastructure needed for property development and investment financing.

The Transformation Reality

In commercial real estate, technology becomes essential rather than optional. The complexity of international compliance, multi-party coordination, and ongoing asset management requires sophisticated digital infrastructure.

Property developers and investors need real-time visibility into deal progress for domestic and other jurisdictions. They require access to global capital sources and competitive term comparison capabilities that manual processes simply cannot provide efficiently.

One Melbourne commercial broker transformed his practice by focusing on strategic advisory work rather than administrative coordination. Moving from 15 residential deals annually to 8 commercial transactions, his revenue increased 180% while his client relationships deepened significantly.

The shift required understanding that commercial clients weren't paying for document coordination—they valued strategic insight into capital structure, market timing, and long-term portfolio optimisation.

The Global Context

Commercial real estate financing operates as a genuinely global marketplace. Property developers require access to international capital sources, competitive term comparison, and streamlined processes across multiple regulatory jurisdictions.

The complexity creates natural barriers to entry that protect specialised operators. Unlike residential lending, where standardisation enables broad competition, commercial property financing rewards deep expertise and sophisticated operational capabilities.

The fundamental principle emerges clearly: in commercial real estate, financing represents a significant strategic decision requiring expert guidance, yet the operational complexity shouldn't impede efficient execution.

This creates a compelling value proposition for advisors who understand the distinction. They participate in the economics of sophisticated deal structuring while specialised technology platforms handle regulatory compliance and operational coordination.

The industry evolution favours those who recognise that commercial property financing requires different expertise, technology infrastructure, and market approach than residential lending—and position themselves accordingly.