Commercial property · commercial investment
Commercial property as an investment asset.
Office, retail, industrial, warehouse properties held for rental yield and capital growth. Higher rates than owner-occupier reflecting tenant risk. Strategic decisions on lease structures and tenant mix matter as much as the loan.
What it is, when it fits
Plain English, with the trade-offs.
A commercial investment loan funds property held for tenant rental income rather than owner-occupation. Lenders price these higher than owner-occupier (typically 0.5% to 1% above) because the borrower's commitment is purely financial and tenant risk is borne by the borrower. Commercial investment lending is more about the deal than the loan: lenders assess tenant quality, lease terms, vacancy assumptions, and your serviceability across worst-case vacancy. Property type matters meaningfully; office, retail, industrial, and warehouse all have different lender appetite, default LVR ranges, and term-sheet covenants. Investment commercial often involves a holding entity (trust, holding company, SMSF) for tax efficiency. Pricing currently 6% to 9% p.a. depending on lender, security, and your business profile. LVR typically 65% to 75% on standard investment commercial; lower for specialised property types, higher for residential-flavoured commercial.
Hands reviewing finance documents over a paper-strewn table.
Typical scenarios
SMSF property investment
Why: Self-managed super fund diversifying into commercial property.
Outcome: Limited recourse borrowing arrangement, 70% LVR, 25-year amortisation, tenant credit assessed.
High-net-worth investor adding commercial to portfolio
Why: Investor diversifying from residential into industrial.
Outcome: $2.5M industrial purchase, 70% LVR, anchor tenant with 5-year lease.
Family office diversifying into industrial
Why: Long-term family wealth allocation into industrial real estate.
Outcome: Multi-property portfolio strategy with cross-collateralisation considerations.
Professional investor buying tenanted office building
Why: Established investor adding tenanted CBD office.
Outcome: $5M loan, 65% LVR, valuation-driven assessment, refinance at year 3.
Lenders for this product
Who we work with.
- Thinktank
- La Trobe Financial
- Liberty Commercial
- RedZed
- Pepper Money
- NAB Business
- CommBank Business
- Westpac Business
Lender accreditation varies; not every lender is available for every deal. We pick from the panel based on your specific situation.
How it works
From brief to settlement.
- 01
Deal review
We review the property, the tenant, the lease, and your investment strategy. Lender appetite varies sharply by property type and tenant quality.
- 02
Lender shortlist
Five to eight lenders fit most investment commercial scenarios. We submit to two with the strongest current rate fit and policy appetite.
- 03
Valuation and conditions
Independent valuation, due diligence on lease and tenant, formal approval. Typical timeline 4 to 6 weeks.
- 04
Settlement and ongoing review
Settlement coordinated with your lawyer. We review the rate at 6 and 12 months and around lease expiry events.
Indicative pricing & terms
Ranges, not promises.
Rate range
6 to 9% p.a.
Loan size
$500K to $20M+
Term
15 to 30 year amortisation
Security
First mortgage over the investment property
Indicative only; specific pricing depends on lender, security, and your business profile.
Frequently asked
Honest answers, plain English.
Investment lending criteria?
Lenders assess tenant quality (credit, lease length, sector), property type and location, your financial position and serviceability, and stress-test scenarios (vacancy, rate rises). Standard commercial investment criteria are stricter than residential investment because tenant risk is higher.
Tenant due diligence requirements?
For tenanted properties, lenders typically want lease copies, tenant financials (where available), and sometimes independent reference checks. Anchor-tenant deals often get tighter pricing because revenue is concentrated and assessable.
Lease terms and lender appetite?
Longer leases (5+ years remaining) usually attract better pricing because rental income is more secure. Short remaining lease terms often see rate or LVR adjustments to reflect re-let risk.
Vacancy risk pricing?
Most lenders assume a 2 to 5% vacancy in serviceability calculations regardless of current occupancy. Specialist lenders sometimes adjust this for prime tenanted properties.
GST and rental income?
Commercial rent is generally GST-applicable; the investor charges GST on rent and claims GST on expenses (including ongoing property costs). Investment property structures (SMSF, trust) affect GST registration; coordinate with your accountant.
Commercial vs residential investment returns?
Commercial typically yields higher (5 to 8%) but with sharper tenant and re-let risk. Residential yields lower (3 to 5%) but with simpler operations and broader liquidity. The right choice is portfolio-level rather than property-level.
Related products
If this isn't quite the fit.
Next step
Twenty minutes, no obligation.
Tell us the shape of the deal and the timing. We'll send a lender shortlist for commercial investment property or, if it isn't the right fit, an honest signal of what is.